Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY recently broke the hourly Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 8-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity and Clarity (7 bars). USD/JPY is expected to fall toward the forecast price 115.17.
As can be seen from the daily USD/JPY chart below – the pair previously reversed down exactly from the resistance area located between the strong resistance level 116.30 (previous monthly high from January) and the lower daily Bollinger Band. The proximity of this resistance area adds to the probability USD/JPY will continue to fall toward the forecast price 115.17.