Trade of the Day: CHF/JPY
By: Dima Chernovolov
CHF/JPY recently broke the 4-hour Descending Triangle chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Descending Triangle at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (76 bars) and above-average Clarity (6 bars). CHF/JPY is expected to fall further toward the forecast price 106.90 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the weekly CHF/JPY chart below, the pair earlier reversed down from the resistance area lying between the key resistance level 109.60 and the 61.8% Fibonacci correction of the previous weekly downward impulse from last June. The proximity of this resistance area heightens the probability NZD/USD will continue to fall toward the forecast price 106.90.