Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall inside the clear Down Channel chart pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (2 bars), below-average Uniformity (3 bars) and significant Clarity (8 bars). USD/JPY is expected to fall further inside this Down Channel – in line with the earlier upward reversal from the strong resistance area shown below.
As can be seen from the daily USD/JPY chart below, the price earlier reversed down from the strong resistance area lying between the major, long-term resistance level 107.30 (former multi-month low from September) and the 38.2% Fibonacci correction of the previous sharp downward impulse from February. The proximity of this resistance area increases the probability USD/JPY will continue to fall inside Down Channel.
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