Trade of the Day: USD/JPY

By: Dima Chernovolov

USD/JPY continues to rise inside the hourly Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which reflects the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and strong Clarity (9 bars). USD/JPY is expected to rise further inside this chart pattern – in line with the earlier upward reversal  from the support area shown below.

As can be seen from the monthly USD/JPY chart below – the pair previously reversed up sharply from the support area located between the powerful long-term support level 101.00 (which has been reversing the price from 2014) and the lower monthly Bollinger Band. The proximity of this support area adds to the likelihood USD/JPY will continue to advance inside this Rising Wedge.