Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise inside the 30-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (9 bars). GBP/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily GBP/JPY chart below, the price earlier reversed up from the support area lying between the key support level 135.50 (which also stopped the price at the start of October) and the 50% Fibonacci correction of the upward price impulse (1) from September. The proximity of this support area adds to the probability GBP/JPY will continue to rise inside this Up Channel.