Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall inside the daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (one bar), below-average Uniformity (4 bars) and significant Clarity (7 bars). USD/JPY is expected to fall further inside this Down Channel – in line with the earlier breakout of the long-term support level shown below.
As can be seen from the weekly USD/JPY chart below, the price earlier broke through the powerful, long-term support level 108.00 (which has been reversing the pair from April of 2017). This price level is acting as resistance after it was broken. The proximity of this resistance level increases the probability USD/JPY will continue to fall inside this Down Channel.
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