Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise inside the 15-minute Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and strong clarity (8 bars). GBP/JPY is expected to rise further inside this Rising Wedge.
As can be seen from the daily GBP/JPY chart below – the pair earlier reversed broke the resistance area located between the resistance trendline of the daily down channel from the start of June and the 50% Fibonacci correction of the downward impulse from May. This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability GBP/JPY will continue rise inside this Rising Wedge.