Daily Forex Update: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the daily Rectangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rectangle chart at the 7-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). AUD/JPY is expected to fall further inside this Rectangle – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily AUD/JPY below, the top of this Rectangle formed when the price reversed down from the the resistance area lying between the key resistance level 79.70 (which has been reversing the price from February), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse from December. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Rectangle.