Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY continues to fall inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the sharp Initial Trend (9 bars) and medium Uniformity and Clarity (4 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 Up Channel formed when the price reversed down from the resistance area lying between the key resistance level 111.50 (which has been reversing the price from the middle of April) and the 50% Fibonacci correction of the previous downward impulse from the end of March. The proximity of this resistance zone increases the probability CHF/JPY will continue to fall inside this Up Channel.