Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to rise inside the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend and Uniformity (3 bars) and significant Clarity (7 bars). EUR/JPY is expected to rise further inside this Down Channel.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed up from the support area located between the key support level 128.65, lower daily Bollinger band and the 61.8% Fibonacci correction of the sharp upward impulse from January. The proximity of this support zone adds to the probability EUR/JPY will continue to rise inside this Down Channel.