Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY recently broke the 4-hour Rectangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rectangle at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), higher Uniformity (6 bars) and strong Clarity (9 bars). CHF/JPY is expected to rise toward the forecast price 140.93.
As can be seen from the daily CHF/JPY chart below – the price earlier reversed up from the support area set between the key support level 138.95 (which has been reversing the pair from the start of this month), support trendline from May and the 50% Fibonacci retracement of the earlier upward impulse from last month. The proximity of this support area and the clear daily uptrend increase the probability CHF/JPY will continue to rise toward the forecast price 140.93.