Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to rise inside the 15-minute Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 3-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (6 bars) and lower Clarity (3 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily USD/JPY chart below, the price earlier reversed up from the support area located between the support level 108.20, lower daily Bollinger Band) and the 38,2% Fibonacci correction of the previous sharp upward impulse from October. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Up Channel.