Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), low Uniformity (2 bars) and significant Clarity (7 bars). USD/JPY is expected to rise further inside this chart pattern.

As can be seen from the daily USD/JPY chart below – the price earlier broke the major resistance zone located between the multi-year resistance level 112.40 (previous yearly high from 2019 and 2020) and multi-month resistance level 111.60. The levels are now acting as support levels after they were broken. The proximity of these support levels increases the probability USD/JPY will continue to rise inside this hourly Rising Wedge.