Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to rise inside the 15-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (8 bars) and near-maximum Clarity (9 bars). GBP/JPY is expected to rise further inside this Up Channel.

As can be seen from the daily GBP/JPY chart below – the price earlier reversed up from the support area lying between the key support level 152.6 (previous double top from September), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from September. The proximity of this support area adds to the probability GBP/JPY will continue to rise inside this Up Channel.