Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to fall after the earlier breakout of the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Triangle at the 6-bar level – which is the result of the strong Initial Trend (7 bars), medium Uniformity (5 bars) and lower Clarity (1 bar). GBP/JPY is expected to fall toward the forecast price 138.84 – which is also indicated by the second chart pattern shown below.
As can be seen from the following chart – Autochartist also recently identified a smaller-scale, hourly Down Channel chart pattern. The lower support trendline of this chart pattern stands close to the forecast price mentioned above (138.84) – which adds to the probability the pair will continue to fall in the nearest time.