Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY recently broke the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the strong Initial Trend (8 bars), low Uniformity (2 bars) and near-maximum Clarity (10 bars). USD/JPY is expected to rise toward the forecast price 110.29 – in line with the earlier breakout of the key resistance area shown below.
As can be seen from the daily USD/JPY below, the breakout of this Triangle coincided with the breakout of the resistance area lying between the key resistance level 110.00 (monthly high from January) and the 61.8% Fibonacci correction of the previous sharp downward impulse from December. This price area is acting as strong support zone after it was broken. The proximity of this support area increases the probability USD/JPY will continue to rise toward the forecast price 110.29.
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