Trade of the Day: EUR/JPY

EUR/JPY continues to fall inside the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), high Uniformity (9 bars) and significant Clarity (7 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 located between the key resistance level 157.60 (which has been repeatedly reversing the pair from June) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/JPY will continue to fall inside this Down Channel.