Autochartist recently denitrified the extended horizontal Key Support Level 99.0500 (of the type Approach) on the daily EUR/JPY charts. The Significance of this Key Level is rated by Autochartist at the 6 bar level – which corresponds to the six reversals from this support in the last 206 candles. The pair is expected to continue downward movement toward this Key Level – continuing the recent Breakout of the ABC correction (marked on the chart below) enclosed within the Rising Wedge chart pattern identified earlier by Autochartist (shown on the second chart below) - which has been broken recently.
As can be seen form the following chart, EUR/JPY recently completed the Rising Wedge chart pattern enclosing the ABC correction to the previous daily downward price impulse (its strength is reflected by the maximum 10 bar Initial Trend value). The Forecast price for this Rising Wedge Breakout 98.24 stands close to the above Key Support Level 99.0500 – which heightens the chances that this currency pair will continue to decline toward Key Level 99.0500 tomorrow.
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