Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars) and significant Uniformity and Clarity (7 bars). USD/JPY is expected to fall further inside this Down Channel.
As can be seen from the daily USD/JPY chart below – the price earlier reversed down from the key resistance level 109.70 (which has been reversing the pair from the start April), intersecting with the 61.8% Fibonacci correction of the downward correction from March and the upper daily Bollinger Band. The proximity of the resistance level 109.70 increases the probability USD/JPY will continue to fall inside this hourly Down Channel.