Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to fall inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). CHF/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily CHF/JPY chart below, the top of this chart pattern formed when the pair reversed down from the resistance area lying between the resistance level 111.70 and the upper weekly Bollinger Band. The proximity of this resistance area increases the probability CHF/JPY will continue to fall inside this Up Channel.