Trade of the Day: USD/JPY

USD/JPY continues to fall inside the 15-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the below average Initial Trend (4 bars), higher Uniformity (6 bars) and strong Clarity (8 bars). USD/JPY is expected to fall further inside this Down Channel.

As can be seen from the daily USD/JPY chart below – the pair earlier reversed down from the resistance zone lying between the key resistance level 142.00, upper daily Bollinger Band, 61.8% Fibonacci correction of the downward impulse from last year and the resistance trendline of the weekly up channel from January. The proximity of this resistance zone and the overbought daily Stochastic add to the probability USD/JPY will continue to fall inside this Down Channel.