By: Dima Chernovolov
CHF/JPY continues to rise inside the well-formed daily Down Channel chart pattern which was identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), medium Uniformity (5 bars) and near-maximum Clarity (9 bars). CHF/JPY is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily CHF/JPY chart below, the price reversed up with the daily Piercing Line candlesticks reversal pattern from the support area located between the support level 109,00, lower daily Bollinger Band and the 38,2% Fibonacci correction of the previous upward impulse from October. The proximity of this support area increases the probability CHF/JPY will continue to rise inside this Down Channel.