Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY recently broke the key resistance level 111.26 which was previously identified by Autochartist on the 15-minute charts. Autochartist rates the Significance of this resistance level at the 4-bar level – which is the result of the four previous price reversals from this price level. USD/JPY is expected to continue to rise toward the forecast price 111.48.

As can be seen from the daily USD/JPY chart below – the price earlier reversed up from the support area located between the pivotal support level 110.77 (former monthly high from August) and the 38.2% Fibonacci correction of the upward impulse from September. The proximity of this support area and the clear daily uptrend increase the probability USD/JPY will continue to rise toward the forecast price 111.48.