Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY continues to fall inside the daily Down Channel chart pattern which recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the low Initial Trend (2 bars) and average Uniformity and Clarity (rated at the 5 bar level). USD/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance zone shown below.

As can be seen from the daily USD/JPY chart below, the pair earlier reversed down from the combined resistance zone lying between the key resistance level 113.50 (which has been reversing the price from December), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from November. The proximity of this resistance zone increases the probability USD/JPY will continue to fall inside this Down Channel.

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