Trade of the Day: GBP/JPY

GBP/JPY continues to rise inside the hourly Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which reflects the slow Initial Trend (1 bar) and significant Uniformity and Clarity (6 bars). GBP/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area highlighted below.

As can be seen from the daily GBP/JPY chart below – the pair earlier broke the resistance zone located between the resistance 136.70 (which reversed the price earlier this month) and the 61.8% Fibonacci retracement of the previous downward impulse from the start of June. This price area is behaving as the support zone after it was broken. The proximity of this support zone adds to the probability GBP/JPY will continue to rise inside this Up Channel.