Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to fall inside the 15-minute Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars) and higher clarity (7 bars). USD/JPY is expected to fall further inside this Falling Wedge.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed down from the resistance area located between the key resistance level 110.60 (which has been steadily reversing the price from the start of July), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward wave from July. The proximity of this resistance area adds to the probability USD/JPY will continue to fall further inside this Falling Wedge.