Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY continues to rise inside the 15-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which reflects the strong Initial Trend (8 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 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 broke above the key resistance level 139.30 (which stopped the sharp uptrend in July). This price level is acting as the strong support after it was broken. The proximity of this support level and the clear daily uptrend increases the probability USD/JPY will continue to rise inside this Up Channel.