Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to rise inside the hourly Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the high 4-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and higher Clarity (6 bars). USD/JPY is expected to rise further inside this Rising Wedge.
As can be seen from the daily USD/JPY chart below – the pair earlier reversed up from the support zone located between the support level 114.50 and the 50% Fibonacci correction of the previous upward impulse from the end of January. The proximity of this support zone and the clear daily uptrend add to the probability USD/JPY will continue to rise inside this Rising Wedge.