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.
To subscribe to the e-mail alerts feature is quick and easy. Log into the Autochartist platform, click on ‘Alerts & Messaging’, enter your email address, select the market you want covered, select your language, and the time you want to get your report, and you’re done! You will now receive a quick morning technical outlook of the markets.
For further information on this and other Autochartist products visit www.autochartist.com