By: Dima Chernovolov
CHF/JPY continues to rise inside the 15-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and higher Clarity (8 bars). CHF/JPY is expected to rise further inside this Up 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 earlier reversed up from the support area lying between the key support level 116.20 (which also reversed the price at the end of December), lower daily Bollinger Band, support trendline and the 38.2% Fibonacci correction of the upward impulse from November. The proximity of this support area adds to the probability CHF/JPY will continue to rise inside this Up Channel.