Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and higher Clarity (6 bars). EUR/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down from the resistance area lying between the major long-term resistance level 148.0 (which started the sharp monthly downtrend at the end of 2013) and the upper weekly Bollinger Band. The proximity of resistance zone adds to the probability EUR/JPY will continue to fall inside this Down Channel.