By: Dima Chernovolov
USD/JPY continues to fall inside the 15-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). USD/JPY is expected to fall further inside this Up Channel.
As can be seen from the daily USD/JPY chart below – the price earlier reversed down from the resistance area located between the major long-term resistance level 111.60 (which stopped the previous sharp uptrend in July) and the upper daily Bollinger Band. The proximity of this resistance area and overbought daily Stochastic increase the probability USD/JPY will continue to fall inside this Up Channel.