Daily Forex Update: USD/JPY

By: Dima Chernovolov

USD/JPY recently broke the well-formed Triangle chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist measures the quality of this Triangle at the 8-bar level – which is the result of the medium Initial Trend (6 bars) and strong Uniformity and Clarity (both rated at the 8 bar level). Autochartist rates the strength of this breakout at the near-maximum, 9-bar level – which adds to the probability USD/JPY will soon reach the forecast price 110.46.

As can be seen from the daily USD/JPY chart below, the bottom of this Triangle formed when the pair reversed up with the daily Hammer from the support zone lying between the key support level 108.80 (which also reversed the price with the daily Morning Star earlier this month) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic indicator increase the probability USD/JPY will continue to rise toward the forecast price 110.46.

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