Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY recently broke the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8 bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and strong Clarity (8 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 109.91.
As can be seen from the daily USD/JPY chart below, the bottom of this Down Channel formed when the price reversed up from the strong support area lying between the pivotal support level 108.80 (which also reversed the price in June) and the lower daily Bollinger Band. The strength of this support area and the oversold reading on the daily Stochastic indicator increase the probability USD/JPY will continue to rise toward the forecast price 109.91.
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