Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to fall inside the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), higher Uniformity (6 bars) and near-maximum Clarity (9 bars). CHF/JPY is expected to continue to fall inside this Down Channel.
As can be seen from the daily CHF/JPY chart below – the price earlier broke the support area located between the support level 119.75 (which has been reversing the pair form last month) and the support trendline of the daily Triangle from July. This price area is acting as the resistance area after it was broken. The proximity of this resistance area adds to the probability CHF/JPY will continue to fall inside this Down Channel.