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 5-bar level – which is the result of the slow Initial Trend (2 bars),  below-average Uniformity (4 bars) and strong Clarity (8 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 pivotal support level 183.50 (which has been reversing the price from the middle of August), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from July. The proximity of this support area and the clear daily uptrend increase the probability GBP/JPY will continue to rise inside this Up Channel.