Daily Forex Update: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to rise inside the Clear Up Channel chart pattern which was earlier identified by Autochartist on the daily charts. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and maximum Clarity (10 bars). Higher Clarity increases the visibility of this Up Channel to the market participants – adding to the likelihood AUD/JPY will continue to rise inside this chart pattern.

As can be seen from the daily AUD/JPY chart below, the price earlier reversed up with the daily Bullish Engulfing from the key support zone lying between the strong support level 85.70 (which has been reversing the price from July), lower daily Bollinger Band and the 50% Fibonacci correction of the sharp upward price impulse from June. The proximity of this support zone increases the probability AUD/JPY will continue to rise inside this Up Channel.

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