Autochartist has determined that the EUR/JPY has broken through the resistance line of a channel up chart pattern on the 240-minute chart. If downside momentum continues over the near-term, expectations are for a further move into the Autochartist forecast price level at 113.45.
The overall quality of this chart pattern is an average 5-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is also 5-bars. The initial trend is up; however the break is to the downside, making the trend change a reversal.
This completed chart pattern has a uniformity rating of 6-bars. This indicates a better than average number of equidistant tops and bottoms. The clarity indicator is rated the maximum 10-bars. This means that the chart pattern is “clean” and has been formed without any distracting price gaps or price spikes.
Although the breakout rating is only 1 bar, the EUR/JPY has the potential to expand its range to the downside. Based on its Power Stats, the EUR/USD may reach 113.80 over the near-term. A break though this price is likely to trigger a move to the next target at 113.45. A failure to hold this price could trigger an acceleration to the downside.