Daily Forex Update: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to fall inside the clear Down Channel chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend and Uniformity (both rated at the one bar level) and the higher Clarity (6 bars). EUR/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance zone shown below.
As can be seen from the daily EUR/JPY chart below, the price earlier reversed down from the resistance zone lying between the key resistance level 132.30 (which reversed the previous minor correction at the end of February), upper daily Bollinger Band and the 61.8% Fibonacci correction of the earlier downward impulse from last month. The proximity of this resistance zone increases the probability EUR/JPY will continue to fall inside this Down Channel.
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