By: Dima Chernovolov
CHF/JPY continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel chart at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). CHF/JPY is expected to rise further inside this Up 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 key support level 116.30 (which has been reversing the price from the end of December), lower daily Bollinger Band and the 50% Fibonacci correction of the upward price impulse from November. The proximity of this support zone increases the probability CHF/JPY will continue to rise inside this Up Channel.