By: Dima Chernovolov
EUR/JPY continues to rise inside the 4-hour Triangle chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/JPY is expected to rise further inside this Triangle – in line with the earlier upward reversal from the strong support area shown below.
As can be seen from the daily EUR/JPY chart below, the pair recently reversed up from the support area lying between the key support level 120.70 (which also reversed the price in May), upper trendline of the recently broken daily down channel from April (acting as support after it was broken) and the lower daily Bollinger Band. The proximity of this support area adds to the likelihood EUR/JPY will continue to rise inside this Triangle.