Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the 15-minute Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 7-bar level – which is the result of the significant Initial Trend (7 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). EUR/JPY is expected to rise further inside this Ascending Triangle.
As can be seen from the daily EUR/JPY chart below – the price earlier reversed up from the support area located between the pivotal support level 127.95 (previous monthly low from August) and the upper daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic add to the probability EUR/JPY will continue to rise inside this Ascending Triangle.