By: Dima Chernovolov
GBP/JPY continues to rise inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the significant Initial Trend (7 bars), near-maximum Uniformity (9 bars) and strong Clarity (8 bars). GBP/JPY expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily GBP/JPY chart below – the price earlier broke the key resistance level 139.80 (which reversed the price in June and earlier this month, as can be seen below). This price level is acting as the strong support level after it was broken. The proximity of this support level and the strength of the active daily uptrend increase the probability GBP/JPY will continue to rise inside this Up Channel.