Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY continues to fall inside the Clear Down Channel chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist rates the Quality of this Down Channel at the 5 bar level – which reflects the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and the near-maximum Clarity (9 bars). USD/JPY is expected to continue to fall inside this Down Channel – which is also indicated by the analysis shown on the second chart below.

As you can see from the daily USD/JPY chart, the price earlier broke the support zone lying between the pivotal support level 111.80 (which has been reversing the pair from last November) and the 38.2% Fibonacci correction of the upward impulse from 2016. This price area is acting as resistance now after it was broken. The proximity of this resistance area increases the probability USD/JPY will continue to fall inside this hourly Down Channel.

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