By: Dima Chernovolov
USD/JPY continues to rise inside the uniform Up Channel chart pattern which was recently identified by Autochartist on the 30-minute charts. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (one bar) and significant Uniformity and Clarity (7 bars). USD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level displayed below.
As can be seen from the daily USD/JPY chart below, the price recently broke the pivotal resistance level 112.50 (which reversed the price sharply earlier this month). The breakout of this resistance level strengthened the bullish pressure on this currency pair (as is indicated by the rising daily Momentum). The price level 112.50 is acting as support after it was broken. The proximity of this support level increases the probability USD/JPY will continue to rise inside this Up Channel.
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