Trade of the Day: EUR/JPY

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 average Initial Trend (5 bars), low Uniformity (2 bars) and strong Clarity (7 bars). EUR/JPY is expected to fall further inside this Down Channel.

As can be seen from the weekly EUR/JPY chart below – the pair earlier reversed down from the powerful resistance zone located between the key resistance level 147.75 (which stopped the previous weekly uptrend in 2022) and the upper daily Bollinger Band. The proximity of this resistance zone and the overbought weekly Stochastic add to the probability EUR/JPY will continue to fall further inside this Down Channel.