Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY recently broke the key support level 113.90 which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the Significance of this support 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 fall toward the forecast price 113.56.

As can be seen from the weekly USD/JPY chart below – the price earlier reversed down from the major resistance zone located between the long-term resistance level 114.40 and the upper weekly Bollinger Band. The proximity of this resistance zone and the overbought weekly Stochastic increase the probability USD/JPY will continue to fall toward the forecast price 113.56.