By: Dima Chernovolov
NZD/JPY continues to rise inside the well-formed daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the strong Initial Trend (8 bars), significant Uniformity (7 bars) and above-average Clarity (6 bars). NZD/JPY is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily NZD/JPY chart below, the bottom of this Down Channel formed when the pair reversed up from the powerful support area lying between the key support level 76.200 (which also reversed the price multiple times in April and May) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/JPY will continue to rise inside this Down Channel.
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