Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise after breaking the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and substantial Clarity (8 bars). GBP/JPY is expected to rise toward the forecast price 151.24.
As can be seen from the daily GBP/JPY chart below – the price earlier reversed up from the major support area located between the long-term support level 149.20 (which has been reversing the price from last march), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from last year. The proximity of this support area increases the probability GBP/JPY will continue to rise toward the forecast price 151.24.