Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to rise inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (7 bars) and higher Clarity (8 bars). CHF/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance level shown below.
As can be seen from the daily CHF/JPY chart below – the price earlier broke above the key resistance level 116.500 (which stopped the sharp previous impulse wave at the start of August). This price level is acting as the strong support level after it was broken. The proximity of this support level and the strength of the active daily uptrend increase the probability CHF/JPY will continue to rise inside this Up Channel.