Trade of the Day: NZD/JPY
By: Dima Chernovolov
NZD/JPY continues to rise inside the clear daily Up Channel chart pattern which was identified earlier identified by Autochartist. Autochartist measures the quality of this Up Channel at the 7-bar level – which is the result of the lower Initial Trend (3 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). NZD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily NZD/JPY chart below, the price recently broke above the resistance area lying between the key resistance level 72.90 and the 38.2% Fibonacci correction of the earlier downward impulse from March. This price zone is acting as support area after it was broken. The proximity of this support area adds to the probability NZD/JPY continue to rise inside this daily Up Channel.