Trade of the Day: NZD/JPY

NZD/JPY continues to fall inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). NZD/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily NZD/JPY chart below – the pair recently broke the support area set between the key support level 82.00 (which reversed the pair twice from the start of this month) and the 50% Fibonacci correction of the upward impulse from March. This zone is acting as the resistance zone after it was broken. The proximity of this resistance zone and the clear daily downtrend increase the probability NZD/JPY will continue to fall inside this Down Channel.