Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to rise inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 9-bar level – which is the result of the sharp Initial Trend and Uniformity (10 bars)  and significant Clarity (8 bars). CHF/JPY is expected to continue to rise inside this Down Channel.

As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support area located between the multi-month support level 119.30 (which has been reversing the price from May) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability CHF/JPY will continue to rise inside this Down Channel.