Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 4-bar level – which is the result of the medium Initial Trend (4 bars), above-average Uniformity (6 bars) and lower Clarity (4 bars). EUR/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the major resistance level shown below.
As can be seen from the daily EUR/JPY chart below – the price earlier broke the key multi-month resistance level 127.20 (which has been reversing the price from the middle of January). This price level is acting as the strong support after it was broken. The proximity of this support level and the strengthening daily uptrend add to the probability EUR/JPY will continue to rise inside this Up Channel.