Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY recently broke the daily Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 8-bar level – which is the result of the significant Initial Trend (7 bars), average Uniformity (5 bars) and maximum Clarity (10 bars). CHF/JPY is expected to rise toward the forecast price 117.03.
As can be seen from the daily CHF/JPY chart below, the bottom of this Down Channel formed when the price reversed up from the support area lying between the key support level 115.70 (former resistance from August), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from July. The proximity of this support area, strong daily uptrend increases the chances CHF/JPY will continue to rise toward the forecast price 117.03.