Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY continues to rise inside the 30-minute Up Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Up Channel at the 54-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (7 bars) and lower Clarity (4 bars). NZD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the powerful support area shown below.

As can be seen from the weekly NZD/JPY, the price earlier reversed up from the support zone lying between the major, long-term support level 69.00 (which has been reversing the price from the end of 2016) and the lower weekly Bollinger Band. This price level is acting as strong support after it was broken. The proximity of this support zone increases the probability NZD/JPY will continue to rise inside this Up Channel.