By: Dima Chernovolov
CHF/JPY continues rise fall inside the 4-hour Descending Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Descending Triangle at the 4-bar level – which is the result of the slow Initial Trend and Uniformity (3 bars) and above-average Clarity (6 bars). CHF/JPY is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily CHF/JPY chart below, the price earlier reversed down from the major resistance area lying between the long-term resistance level 117.60 (which reversed the price twice sharply in August) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability CHF/JPY will continue to fall inside this 4-hour Descending Triangle chart pattern.