Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to rise inside the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars), and substantial Clarity (8 bars). CHF/JPY is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the major resistance area shown below.
As can be seen from the daily CHF/JPY chart below – the pair recently reversed down from resistance area located between the powerful resistance level 114.00 (which has been reversing the price from the start of January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability CHF/JPY will continue to fall inside this chart pattern.