By: Dima Chernovolov
NZD/JPY continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 7-bar level – which is the result of the slow Initial Trend (3 bars) and strong Uniformity and Clarity (9 bars). NZD/JPY is expected to rise further inside this Up Channel.
As can be seen from the NZD/JPY chart below – the price earlier reversed up from the pivotal support 78.30 (former resistance level from April), intersecting with the 38.2% Fibonacci correction of the upward impulse from April. The proximity of this support level and the strong daily uptrend increase the probability NZD/JPY will continue to rise inside this 4-hour Up Channel.