By: Dima Chernovolov
USD/JPY continues to fall inside the well-formed 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 9-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). USD/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily USD/JPY chart below – the price earlier reversed down from the resistance area lying between the key resistance level 106.80 (former support from July) and the 50% Fibonacci correction of the downward impulse from June. The proximity of this resistance area adds to the probability USD/JPY will continue to fall inside this Down Channel.