Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to fall inside the extended daily Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars) and significant Clarity (7 bars). GBP/JPY expected to fall further inside this Rising Wedge – in line with the recent breakout of the support area shown below.
As can be seen from the daily GBP/JPY chart below – price earlier broke through the support area lying between the round support level 140.00 (former resistance from August) and the support trendline of the short-term daily up channel from July. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area adds to the probability GBP/JPY will continue to fall inside this Rising Wedge.