Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to fall inside the 240-minute Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 8-bar level – which is the result of the medium Initial Trend (5 bars), significant Uniformity (7 bars) and stronger Clarity (8 bars). NZD/JPY is expected to fall further inside this Rising Wedge.

As can be seen from the daily NZD/JPY chart below – the pair earlier reversed down from the powerful resistance area located between the long-term resistance level 87.8 (which reversed the sharp uptrend in September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability NZD/JPY will continue to fall further inside this Rising Wedge.