EUR/JPY has recently completed the Clear Rising Wedge chart pattern identified by Autochartist on the hourly charts. The overall Quality of this chart pattern is rated at the 6 bar level - which is the result of the low Initial Trend (measured at the one bar level), above-average Uniformity (6 bars) and maximum Clarity (10 bars). The completion of this chart pattern reverses the preceding daily upward correction to the strong long-term downtrend visible on the daily and the weekly EUR/JPY charts. The top of this chart pattern (point C on the chart below) formed when the pair reversed down from the strong resistance area made out of the round price level 110.00 (which had previously reversed the pair down in the February of this year as well as in the November of the last year) and the 50% Fibonacci Retracement of the preceding sharp daily downward price impulse from the April of 2011 (as is show on the second chart below). The pair is expected to fall further toward the Forecast Price 108.36.
The following daily EUR/JPY chart highlights the technical price levels mentioned above:
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