Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall inside the daily Up Channel chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 7-bar level – which is the result of the significant Initial Trend (7 bars), lower Uniformity (4 bars) and strong Clarity (9 bars). CHF/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily CHF/JPY chart below, the price earlier reversed down from the key resistance area made out of the long-term resistance level 117.60 (which has been reversing the price from August) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability CHF/JPY will continue to fall inside this Up Channel.