Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the 15-minute Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). USD/JPY is expected to fall further inside this Ascending Triangle.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed up sharply from the support area located at the intersection of the key support level 145.20 (which has been reversing the price from the start of September) and the 38.2% Fibonacci correction of the upward price impulse from April. The proximity of this support area and the clear daily uptrend increase the probability USD/JPY will continue to rise inside this Ascending Triangle.