Trade of the Day: EUR/JPY

By: Dima Chernovolov
EUR/JPY recently broke the 4-hour Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 8-bar level – which is the result of the medium Initial Trend (5 bars) and significant Uniformity and Clarity (7 bars). EUR/JPY is expected to rise toward the forecast price 138.11.

As can be seen from the daily EUR/JPY chart below – the price earlier broke the resistance zone located between the resistance level 136.50 (which has been reversing the pair from the middle of May), the resistance trendline of the daily down channel from April and the 50% Fibonacci correction of the downward correction from last month. This price area is acting as the support area after it was broken. The proximity of this support area increases the probability EUR/JPY will continue to rise toward the forecast price 138.11.