Trade of the Day: GBP/JPY

By: Dima Chernovolov
GBP/JPY continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and strong Clarity (8 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 sharply from the key resistance level 168.00 (which has been reversing the pair from the middle of April). After this the pair broke the next support at 164.60, acting as the resistance now, after it was broken. The proximity of these resistance levels adds to the probability GBP/JPY will fall further inside this Down Channel.