Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to rise inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (4 bars), and average Uniformity and Clarity (5 bars). CHF/JPY is expected to rise further inside this Down Channel.

As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support zone lying between the pivotal support level 122.70 (former monthly high from June), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from October. The proximity of this support zone and oversold daily Stochastic increase the probability CHF/JPY will continue to rise inside this Down Channel.