Trade of the Day: EUR/JPY

By: Dima Chernovolov
EUR/JPY recently broke the key support level 141.95, which was previously identified by Autochartist. Autochartist rates the Significance of this support 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 fall toward the forecast price 140.82.

As can be seen from the daily EUR/JPY chart below – the price earlier reversed down from the strong resistance level 144.00 (which has been reversing the price from the start of this month), standing close to the upper daily Bollinger Band. Given the strength of the resistance level 144.00 and the clear bearish divergence on the daily Stochastic indicator, EUR/JPY can be expected to fall toward the forecast price 140.82.