Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to rise inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel chart at the 7-bar level – which is the result of the moderate Initial Trend (5 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the major resistance level show below.
As can be seen from the weekly USD/JPY chart below – the price earlier boke the multi-month resistance level 109.80 (which reversed the price at the start of 2020). This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the active weekly impulse wave increase the probability USD/JPY will continue to rise inside this daily Up Channel.