Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to rise inside the 4hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the strong Initial Trend (8 bars), lower Uniformity (3 bars) and significant Clarity (8 bars). EUR/JPY is expected to rise further inside this Up Channel .

As can be seen from the daily EUR/JPY chart below – the price earlier broke through the key resistance level 132.00 (which has been reversing the price from last month). This level is acting as the support after it was broken. The proximity of this support level and the strength of the active upward impulse add to the probability EUR/JPY will continue to rise inside this Up Channel .