Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to rise inside the well-formed Ascending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 6-bar level – which reflects the slow Initial Trend (1 bar), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). CHF/JPY is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support area lying between the key support 113.30 (former resistance from June) and the 50% Fibonacci retracement of the earlier upward impulse from the end of last month. The proximity of this support area increases the probability CHF/JPY will continue to rise inside this Ascending Triangle.