By: Dima Chernovolov
CHF/JPY continues to rise inside the 4-hour Up Chanel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Chanel at the 5-bar level – which is the result of the average Initial Trend (5 bars), medium Uniformity (5 bars) and strong Clarity (8 bars). CHF/JPY is expected to rise further inside this Up Chanel – in line with the earlier upward reversal from the support zone shown below.
As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support zone located between the key support level 115.70 (former strong resistance from July) and the 38.2% Fibonacci correction of the previous upward impulse from July. The proximity of this support area increases the probability CHF/JPY will continue to rise inside this Up Chanel.