Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to rise inside the well-formed 15-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 8-bar level – which is the result of the strong Initial Trend (8 bars), and significant Uniformity and Clarity (7 bars). USD/JPY is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily USD/JPY chart below – the price earlier reversed up from the support area lying between the key support level 108.00 (which has been reversing the price from October), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from October. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Rising Wedge.