Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to fall inside the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), lower Uniformity (3 bars) and substantial Clarity (8 bars). EUR/JPY is expected to continue to fall inside this Up Channel.
As can be seen from the daily EUR/JPY chart below – the top of this Up Channel formed when the pair reversed down the resistance zone lying between the resistance level 130.50 (which also reversed the price in July), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from the start of June. The proximity of this resistance zone adds to the probability EUR/JPY will continue to fall inside this Up Channel.