Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). CHF/JPY is expected to fall further inside this Down Channel – in lime with the earlier breakout of the support zone shown below.

As can be seen from the daily CHF/JPY chart below, the price earlier broke the support zone set between the key support level 115.15 and the 61.8% Fibonacci correction of the previous upward impulse from the middle of July. This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance area increase the probability CHF/JPY will continue to fall inside this Down Channel.