By: Dima Chernovolov
EUR/JPY recently broke the 30-minute Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 5-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and higher Clarity (6 bars). EUR/JPY is expected to rise toward the forecast price 118.89 – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily EUR/JPY chart below – the pair earlier broke the resistance area lying between the pivotal resistance level 117.80 (previous resistance pivot from the end of April) and the 50% Fibonacci correction of the previous sharp downward impulse from March. This price area is acting as the support zone after it as broken. The proximity of this support zone increases the probability EUR/JPY will continue to rise toward the forecast price 118.89