Trade of the Day: EUR/JPY
By: Dima Chernovolov
EUR/JPY continues to fall inside the uniform 30-minute Down Channel chart pattern which was previously 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 (3 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/JPY chart below – the price earlier reversed down from the resistance area lying between the key resistance level 122.40 (which has been reversing the price from July) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/JPY will continue to fall inside this Down Channel.