Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to rise inside 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and above-average Clarity (6 bars). NZD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support level shown below.

As can be seen from the daily NZD/JPY chart below, the pair earlier reversed up from the key support level 71.50 (former strong resistance level which has been reversing the pair from June). The clear daily uptrend, the acceleration of the daily Momentum and the proximity to the support level 71.50 increase the probability NZD/JPY will continue to rise inside this 4-hour Up Channel.