Trade of the Day: USD/JPY
USD/JPY continues to rise inside the 4-hour Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars) and higher Clarity (6 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 broke the resistance area located between the key resistance level 134.55 (former monthly high from January) and the 61.8% Fibonacci correction of the earlier downward impulse from December. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Rising Wedge.