Trade of the Day: USD/JPY

By: Dima Chernovolov
USD/JPY continues to rise inside the 60-minute Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this p Channel at the 5-bar level – which reflects the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed up from the support area lying between the key support level 106.00 (former monthly low from May), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from March. The proximity of this support area adds to the probability USD/JPY will continue to inside this hourly Up Channel.