By: Dima Chernovolov
EUR/JPY continues to rise inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support zone shown below.
As can be seen from the daily EUR/JPY chart below – the price earlier reversed up from the support area located between the support level 124.25 (former multi month high from June and July, acting as the support after it was broken previously) and the 50% Fibonacci correction of the earlier upward impulse from last month. The proximity of this support area adds to the probability EUR/JPY will continue to rise inside this Up Channel.