By: Dima Chernovolov
NZD/JPY continues to fall inside the well-formed Down Channel chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (3 bars) and substantial Uniformity and Clarity (both rated at the 8 bar level). NZD/JPY is expected to fall further inside this Down Channel – in line with the earlier breakout of the powerful support level shown below.
As can be seen from the daily NZD/JPY chart below, the pair earlier broke below the strong support level 78.20 (which reversed the price in August and September). This price level is acting as resistance level after it was broken. The proximity of this resistance level increases the probability NZD/JPY will continue to fall inside this Down Channel.
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