Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 8-bar level – which is the result of the significant Initial Trend (7 bars), higher Uniformity (8 bars) and substantial Clarity (7 bars). CHF/JPY is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support area located between the support powerful level 116.30 (former resistnace level form October, which has been repeatedly reversing the pair form December) and the lower daily Bollinger Band. The proximity of this support area increases the probability CHF/JPY will continue to rise inside this Down Channel.