Trade of the Day: EUR/JPY

By: Dima Chernovolov

EUR/JPY recently broke the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity and Clarity (8 bars). EUR/JPY is expected to rise toward the forecast price 118.23 – in line with the earlier breakout of the key resistance area shown below.

As can be seen from the daily EUR/JPY chart below – the pair earlier broke the resistance area lying between the key resistance level 117.704 and the 50% Fibonacci retracement of the previous downward impulse from March. This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability EUR/JPY will continue to rise toward the forecast price 118.23