Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the clear Up Channel chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars) and medium Uniformity and Clarity (both rated at the 5 bar level). USD/JPY is expected to rise further inside this Up Channel in line with the earlier breakout of the resistance zone shown below.

As can be seen from the daily USD/JPY chart below, the price earlier broke through the resistance area lying between the resistance level 107.000 (which has been reversing the price from March), resistance trendline of the daily down channel from January and the 38.2% Fibonacci correction of the downward impulse from February. 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 Up Channel.

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