EUR/JPY is continuing the long-term downtrend inside the Triangle chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is measured at the above-average level of 6 bars which is the result of a strong Initial Trend (rated at the 8 bar level) and lower Uniformity and Clarity of this Triangle (rated at the 4 and 5 bars correspondingly). The high Initial Trend corresponds to the sharp down impulse that preceded this price formation. This impulse stopped and reversed up from the strong support at the round price level 106.00, leaving a smaller-scale double bottom chart pattern at this level and forming the first connecting point for the lower support line of this Triangle. The price has recently reversed down from the upper resistance line of this chart pattern with a sharp Bearish Engulfing Japanese candlestick pattern. The pair is expected to continue downward movement in the coming sessions.
The 240-minute EUR/JPY shows the Down Channel chart pattern that is developing in accordance with the longer term downtrend mentioned above. The Quality of this chart pattern is rated at the high 7 bar level, which is the result of the maximum Initial Trend value (10 bars) and significant Clarity of this price pattern (8 bars). The high Initial Trend reflects the sharpness of the preceding upward correction to the longer term down thrust visible on the daily chart above. The upper trend line of this Down Channel can be used for opening sell entries protected with a close stop-loss.
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