EUR/JPY is continuing to fall inside the highly Uniform Falling Wedge chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is measured at the average 5 bar level as a result of the follojavascript:;wing values of the individual contributing Quality indicators: low Initial Trend (rated at the one bar level), near maximum Uniformity (9 bars) and average Clarity (5 bars). Low Initial Trend of this chart pattern corresponds to the sideways price action which developed before this chart pattern as the price approached strong support at the round price level 114.00 (point C on the chart below formed when the price reversed up from this support level). Higher Uniformity of this chart pattern reflect even distribution of the connecting points of the lower and the upper trendlines of this Falling Wedge.

Higher uniformity (and the resultant higher visibility of this chart pattern) is also helped by the fact that the two corrections of this chart pattern (from C to A and from D to B) are also clear-cut ABC corrections to the previous downward impulses. The top of this chart pattern (point A) formed close to the previous high at the resistance level 117.50, while the bottom (point D) was set near the support at the round price level 110.00.

""

The price has recently reversed sharply (at point B) from the combined resistance made out of the aforementioned previous strong support at 114.00 (now acting as resistance after it has been broken by the first downward impulse of this chart pattern - from A to D) and the 50% Fibonacci Retracement of the A to D impulse (as is shown on the second chart below) and is expected to fall further. The pair is currently trading close to the previous low at 110.00, which should be broken for the pair to continue falling. The following daily EUR/JPY chart demonstrates aforementioned technical price levels:

""

For further information on this and other Autochartist products visit www.autochartist.com.