Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to rise inside the 4-hour Flag chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Flag at the 7-bar level – which is the result of the sharp Initial Trend (9 bars), low Uniformity (2 bars), and near-maximum Clarity (9 bars). CHF/JPY is expected to rise further inside this Flag – in line with the recent upward reversal from the support area shown below.

As can be seen from the daily CHF/JPY chart below – the pair recently reversed up with the daily Hammer (high Initial Trend reflects the lower shadow of this candlestick pattern) from the support area lying between the key support level 110.00 (which has been reversing the price from March), lower daily Bollinger Band and the 61.8% Fibonacci retracement of the previous upward impulse from November. The proximity of this support area adds to the probability CHF/JPY will continue to rise inside this Flag.