Trade of the Day: NZD/JPY
By: Dima Chernovolov
NZD/JPY continues to fall after the recent breakout of the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (6 bars) and lower Clarity (4 bars). NZD/JPY is expected to fall toward the forecast price 74.79 – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily NZD/JPY below, the price earlier down up from the resistance area lying between the key resistance level 76.60 (which has been reversing the price from the end of February) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability NZD/JPY will continue to fall toward the forecast price 74.79.