Trade of the Day: USD/JPY
By: Dima Chernovolov
USD/JPY recently broke the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). USD/JPY is expected to fall toward the forecast price 109.39 – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the weekly USD/JPY chart below – the price earlier reversed down from the major resistance area located between the long-term resistance level 112.00 (which has been reversing the price from the start of 2019) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability USD/JPY will continue to fall toward the forecast price 109.39.