Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and medium Clarity (5 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily USD/JPY chart below – the price earlier broke through the resistance area lying between the resistance level 109.65 (which has been reversing the price from November) and the 50% Fibonacci correction of the previous downward impulse from 2018. This price area is acting as support zone after it was broken. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Up Channel.