Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bars), medium Uniformity (5 bars) and significant Clarity (7 bars). EUR/JPY is expected to fall further inside this Falling Wedge.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down from the major resistance area located between the strong resistance level 144.30 (which reversed the price multiple times from June), upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/JPY will continue to fall inside this Falling Wedge.