By: Dima Chernovolov
EUR/JPY continues to rise inside the 4-hour Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Rising Wedge at the 4-bar level – which reflects the slow Initial Trend (1 bar), lower Uniformity (3 bars) and strong Clarity (8 bars). EUR/JPY is expected to rise further inside this chart pattern.
As can be seen from the daily EUR/JPY chart below – the pair previously broke the resistance area located between the resistance level 140.00 (former minor support from June) and the 38.2% Fibonacci retracement of the downward correction from last month. This price area is acting as the support zone 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 Rising Wedge.