Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall inside the uniform daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 6-bar level – which reflects the below-average Initial Trend (4 bars), strong Uniformity (8 bars) and significant Clarity (7 bars). USD/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the major resistance area shown below.
As can be seen from the weekly USD/JPY chart below, the top of this Up Channel formed when the pair reversed down with the weekly Japanese candlestick reversal pattern Evening Star Doji from the major resistance area located between the long-term resistance level 114.30 (which has been reversing the price from April of 2017) and the upper weekly Bollinger Band.. The proximity of this resistance zone increases the probability USD/JPY will continue to fall inside this Up Channel.
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