Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to rise inside the 15-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the high 3-bar level – which is the result of the slow Initial Trend (1 bar) and  below-average Uniformity and Clarity (4 bars). EUR/JPY is expected to rise further inside this Up Channel.

As can be seen from the daily EUR/JPY chart below – the pair previously broke the key resistance level 132.13 (which stopped the price earlier this month). This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the active upward impulse wave increase the probability EUR/JPY will continue to rise inside this Up Channel.