USD/JPY is continuing the prevailing down-trend inside the high-quality Triangle chart pattern identified by Autochartist on the daily chart. The Quality of this chart pattern is rated at the high 8 bar level, mains as a result of the maximum Initial Trend value (10 bars) and strong Uniformity and Clarity values (6 and 7 bars correspondingly). The high Initial Trend value describes sharp downward price thrust that preceded this chart pattern (which stopped at the major long-term support level 80 and formed the bottom of the base of this Triangle). The price has recently reversed down from the long-term resistance trend line (originating on the 5th of May of 2010) that passes very close to the upper resistance line of this chart pattern. The pair is expected to continue falling in the nearest future.
The hourly USD/JPY chart is showing the Falling Wedge chart pattern identified by Autochartist. The price is close to the upper resistance line of this chart pattern which can be used for opening sell entries in accordance with the prevailing down-trend visible on the daily charts.
Opening a sell order at this level would require placing the stop-loss at the distance no more than 3 EPRs (Expected Price Range) from the entry. One EPR for the hourly USD/JPY chart is equal to 22 pips, as can be seen below:
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