Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the 30-minute Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), near-maximum Uniformity ( bars) and significant Clarity (7 bars). USD/JPY is expected to rise further inside this Rising Wedge.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed up from the support area located between the powerful support level 1.24000 (former resistance from May, which has been reversing the price from June) and the lower daily Bollinger Band. The proximity of this support area adds to the probability USD/JPY will continue to rise inside this Rising Wedge.