By: Dima Chernovolov
GBP/JPY continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and significant Clarity (7 bars). GBP/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be support from GBP/JPY chart below, the price earlier broke the resistance area lying between the key resistance level 142.75 (former multi-month high from September) and the resistance trendline of the daily up channel from October. This price zone is acting as the support area after it was broken. The proximity of this support area increases the probability GBP/JPY will continue to rise inside this Up Channel.