Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY recently broke the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (9 bars), above-average Uniformity (7 bars) and strong Clarity (8 bars). CHF/JPY is expected to fall toward the forecast price 109.51 – in line with the earlier downward reversal form the resistance area shown below.
As can be seen from the daily CHF/JPY chart below, the price earlier reversed down from the combined resistance area lying between the key resistance level 110.10 (which has been reversing the price from July) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability CHF/JPY will continue to fall toward the forecast price 109.51.