By: Dima Chernovolov
CHF/JPY continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the strong Initial Trend (9 bars), significant Uniformity (8 bars) and medium Clarity (6 bars). CHF/JPY is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level shown below.
As can be seen from the daily CHF/JPY chart below – the pair recently broke through the major support level 109.50 (which has been reversing the price from the end of last November of April). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level and the strength of the previous daily downward impulse heighten the odds CHF/JPY will continue to fall inside this Down Channel.