Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the clear hourly Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Rising Wedge at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and higher Clarity (7 bars). EUR/JPY is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/JPY below, the price earlier reversed up from the support area lying between the key support level 124.20 (which has been reversing the price from February), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous upward impulse from January. The proximity of this January area increases the probability EUR/JPY will continue to rise inside this chart pattern.