By: Dima Chernovolov
USD/JPY continues to rise inside the clear 15-minute Up Channel pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the average Initial Trend (5 bars), lower Uniformity (4 bars) and strong Clarity (8 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward breakout of the major resistance zone shown below.
As can be seen from the daily USD/JPY chart below, the price earlier broke through the resistance zone lying between the key resistance level 110.00 and the 50% Fibonacci correction of the downward impulse from November. 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 rise inside this Up Channel.
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