Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to fall inside the uniform 30-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), strong Uniformity (9 bars) and sufficient Clarity (8 bars). CHF/JPY is expected to fall further inside this Down Channel .
As can be seen from the daily CHF/JPY chart below – the pair earlier reversed down with the daily Bearish Engulfing from the resistance area set between the strong resistance level 143.10 (which has been reversing the pair from June) and the lower daily Bollinger Band. The proximity of this resistance area and the bearish divergence on the daily Stochastic increase the probability CHF/JPY will continue to fall inside this Down Channel.