By: Dima Chernovolov
EUR/JPY recently broke the daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). EUR/JPY is expected to rise toward the forecast price 123.43 – in line with the earlier up reversal from the key support area shown below.
As can be seen from the daily EUR/JPY chart below, the bottom of this Down Channel formed when the pair reversed up with the daily Japanese candlesticks reversal pattern Piercing Line from the support area lying between the key support level 121.00 and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/JPY will continue to rise toward the forecast price 123.43.