Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), higher Uniformity (6 bars) and medium clarity (5 bars). USD/JPY is expected to rise further inside this Down Channel.

As can be seen from the daily USD/JPY chart below – the bottom of this Down Channel formed when the pair reversed up from the support area located between the key support level 109.20 (which has been reversing the pair from the start of June), lower daily Bollinger band and the 61.8% Fibonacci correction of the upward impulse from April. The proximity of this support zone and the clear uptrend increase the probability USD/JPY will continue rise inside this Down Channel.