Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the 15-minute Up Chanel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Chanel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). EUR/JPY is expected to fall rise further inside this Up Chanel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/JPY chart below – the price earlier reversed up from the support area lying between the key support level 124.30 (former resistance from June and July) and the 50% Fibonacci correction of the previous upward impulse from July. The proximity of this support area add and the strength of the active daily uptrend increase the probability EUR/JPY will continue to rise inside this Up Chanel.