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 reflects the strong Initial Trend (10 bars), low Uniformity (2 bars) and above-average Clarity (6 bars). CHF/JPY is expected to fall further inside this Up Channel – in line with the earlier downer reversal from the resistance area shown below.
As can be seen from the daily CHF/JPY chart below – the pair recently reversed down sharply from the resistance area lying between the multi-month resistance 114.00 (which has been reversing the price from January) and the upper daily Bollinger band. The proximity of this resistance zone increases the probability CHF/JPY will continue to fall inside this Up Channel.