By: Dima Chernovolov
USD/JPY continues to rise inside the clear 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), slow Uniformity (2 bars) and significant Clarity (7 bars). USD/JPY expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily USD/JPY chart below – the pair earlier broke through the key resistance level 110.20 (former monthly high from January, which also reversed the price sharply at the start of February). This price level is acting as the strong support level after it was broken. The proximity of this support level and the clear daily uptrend increase the probability USD/JPY will continue to rise inside this Up Channel.