By: Dima Chernovolov
EUR/JPY recently broke the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 8-bar level – which is the result of the medium Initial Trend (5 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). EUR/JPY is expected to fall toward the forecast price 142.22.
As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down from the key resistance level 142.22 0.5910 (which has been reversing the pair from June) standing well above the upper daily Bollinger Band. The proximity of this resistance level and the overbought daily Stochastic increase the probability EUR/JPY will continue to fall toward forecast price 142.22.