Daily Forex Update: EUR/JPY

By: Dima Chernovolov

EUR/JPY previously broke the daily Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist measures the Quality of this Falling Wedge at the 6 bar level – which is the result of the slow Initial Trend (1 bar) and near-maximum Uniformity and Clarity (both rated at the 9 bar level). High Uniformity and Clarity increase the visibility of this breakout to the market participants and add to the probability EUR/JPY will soon reach the forecast price 120.93.

As can be seen from the daily EUR/JPY chart below, the bottom of this Falling Wedge formed when the pair reversed up from the strong support zone lying between the major support level 118.300 (former strong resistance from July), lower daily Bollinger Band and 50% Fibonacci correction of the sharp upward impulse from October. The proximity of this support zone increases the likelihood EUR/JPY will continue to rise toward the forecast price 120.93 tomorrow.

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