Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to fall inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). GBP/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily GBP/JPY chart below – the price earlier reversed down from the resistance area located between the key resistance level 152.60 (which has been reversing the price from the start of September), 50% Fibonacci correction of the downward impulse from May and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/JPY will continue to fall inside this Down Channel.