Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY recently broke the hourly Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (4 bars), strong Uniformity 8 bars) and significant Clarity (7 bars). CHF/JPY is expected to rise toward the forecast price 120.00.

As can be seen from the daily CHF/JPY chart below – the pair earlier reversed up from the support area located between the support level 119.00 (former monthly low from June), lower daily Bollinger band and the 50% Fibonacci correction of the upward impulse from March. The proximity of this support zone adds to the probability CHF/JPY will continue to rise toward the forecast price 120.00.