Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise inside the 15-minute Up Channel chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity and 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 above the key resistance level 140.00 (which stopped the uptrend in April). This price level is acting as the support level after it was broken. The proximity of this support area and the clear daily uptrend increase the probability EUR/JPY will continue to rise inside this Up Channel.