Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY recently broke the Uniform Descending Triangle chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the Quality of this Descending Triangle at the 7 bar level – which reflects the significant Initial Trend and Uniformity (both rated at the 7 bar level) and above-average Clarity (6 bars). Autochartist rates the strength of this breakout at the maximum, 10-bar level – which increases the probability USD/JPY will soon reach the forecast price 108.94.

As can be seen from the daily USD/JPY chart below, the breakout of this Descending Triangle coincided with the breakout of the support zone lying between the key support level 110.00 and the 50% Fibonacci correction of the previous sharp upward impulse from November. This support zone is acting as resistance zone now after it was broken – which increases the probability USD/JPY will continue to fall toward the forecast price 108.94.

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