By: Dima Chernovolov
EUR/JPY continues to rise inside the daily Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which reflects the slow Initial Trend (1 bar), significant Uniformity (7 bars) and lower Clarity (3 bars). EUR/JPY is expected to rise further inside this chart pattern – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily EUR/JPY chart below – the pair recently broke the resistance area lying between the resistance level 121.40 (which reversed the prices a few times at the end of June) and the 38.2% Fibonacci correction of the previous downward impulse from last month. This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability EUR/JPY will continue to rise inside this Rising Wedge.