Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the hourly Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 3-bar level – which is the result of the slow Initial Trend and Uniformity (1 and 2 bars), and strong Uniformity (8 bars). USD/JPY is expected to rise further inside this Up Channel.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed up with the daily Hammer from the support area located between the pivotal support level 113.50, lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from September. The proximity of this support zone and the clear daily uptrend increase the probability USD/JPY will continue rise inside this Up Channel.