Trade of the Day: EUR/JPY

EUR/JPY continues to rise inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and significant Clarity (8 bars). EUR/JPY is expected to rise further inside this Rising Wedge.

As can be seen from the daily EUR/JPY chart below – the pair earlier reversed up sharply from the support area located between the pivotal support level 153.40 (which also reversed the pair sharply in July), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from May. The proximity of this support area and the clear daily uptrend add to the probability EUR/JPY will continue to rise inside this Rising Wedge.