Trade of the Day: GBP/JPY

GBP/JPY continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (4 bars), lower Uniformity (2 bars) and above-average Clarity (6 bars). GBP/JPY is expected to rise further inside this Up Channel.

As can be seen from the daily GBP/JPY chart below – the pair earlier reversed up from the support area located between the key support level 163.000 (former strong resistance from March) and the 38.2% Fibonacci correction of the previous upward impulse from last month. The proximity of this support area increases the probability GBP/JPY will continue to rise further inside this Up Channel.