Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the uniform Rising Wedge chart pattern which was previously identified by Autochartist on the 30-minute. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (one bar), maximum Uniformity (10 bars) and significant Clarity (6 bars). USD/JPY is expected to rise further inside this Rising Wedge – in line with earlier breakout of the resistance zone displayed below.

As can be seen from the daily USD/JPY chart below, the price earlier broke through the resistance zone lying between the pivotal resistance level 112.10 (top of the previous correction from July) and 61.8% Fibonacci correction of the previous sharp downward impulse from July. This price zone is acting as support area after it was broken. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Rising Wedge.

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