Trade of the Day: NZD/JPY
NZD/JPY recently broke the 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 average Initial Trend (5 bars), below-average Uniformity and Clarity (4 bars). NZD/JPY is expected to fall toward the forecast price 84.22.
As can be seen from the daily NZD/JPY chart below – the pair earlier reversed down from the major resistance area located between long-term resistance level 87.20 (which reversed the price multiple times from last year) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increase the probability NZD/JPY will continue to fall toward the forecast price 84.22.