By: Dima Chernovolov
USD/JPY recently broke the hourly key support level 109.51, which was previously identified by Autochartist. Autochartist rates the significance of this key support level at the 3-bar level – which is the result of the three previous reversals from this price level. USD/JPY is expected to fall toward the forecast price 108.76.
As can be seen from the daily USD/JPY chart below – prior to breaking the support level 109.51 the price broke the support area lying between the support trendline of the daily Rising Wedge chart pattern and the round support level 110.00. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability USD/JPY will continue to fall toward the forecast price 108.76.