By: Dima Chernovolov
USD/JPY continues to rise inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 9-bar level – which reflects the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the major support area highlighted below.
As can be seen from the monthly USD/JPY chart below – the price earlier reversed up from the powerful support area located between the multi-year support level 104.00 (which has been reversing the price from the start of 2019) and the lower monthly Bollinger Band. The proximity of this support area increases the probability USD/JPY will continue to rise inside this Up Channel.