Trade of the Day: EUR/JPY

EUR/JPY continues to fall inside the 4-hour Flag chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), and strong Uniformity and strong Clarity (8 bars). EUR/JPY is expected to fall further inside this Flag.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed down sharply from the key resistance level 157.90 (which stopped the previous sharp uptrend in June) and the upper daily Bollinger Band. The proximity of the resistance level 157.90 and the bearish divergence on the daily Stochastic add to the probability EUR/JPY will continue to fall inside this Flag.