Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the 4-hour Flag chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Flag at the 7-bar level – which is the result of strong sharp Initial Trend (10 bars), low Uniformity (2 bars) and substantial Clarity (9 bars EUR/JPY is expected to rise further inside this Flag – 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 located between the key support level 128.20 (which also reversed the price at the start of March), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward price impulse from January. The proximity of this support zone adds to the probability EUR/JPY will continue to rise inside this Flag.