Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the strong Initial Trend and Uniformity (6 bars) and substantial Clarity (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 price recently reversed up from the support area located between the key support level 114.50 (which has been reversing the price from October) , lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous upward impulse wave from Janaury. The proximity of this support zone and the clear daily uptrend increase the probability USD/JPY will continue to rise inside this Up Channel.