Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to rise toward the key resistance level 142.36, which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 4-bar level – which is the result of the four previous price reversals from this price level. EUR/JPY is expected to continue to rise toward the resistance level 142.36.
As can be seen from the EUR/JPY chart below – the price recently up from the support area set between the key support 139.40 (former monthly high from April), 20-day moving average and the 50% Fibonacci correction of the upward impulse from May. The proximity of this support area and the strong daily uptrend increase the probability EUR/JPY will continue to rise toward the resistance level 142.36.