Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to rise after the recent breakout of the well-formed daily Down Channel identified by Autochartist. Autochartist rates the quality of daily this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). EUR/JPY is expected to rise toward the forecast price 127.49.

As can be seen from the daily EUR/JPY below, the breakout of this Down Channel coincided with the breakout of the 100-day moving average and the weekly down trendline from last September. Both of these price levels are acting as support now – after they were broken. The proximity of the aforementioned support levels increases the probability EUR/JPY will continue to rise toward the forecast price 127.49.