By: Dima Chernovolov
AUD/JPY continues to rise inside the clear Down Channel chart pattern which was recently identified by Autochartist on the hourly charts. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), lower Uniformity (3 bar) and significant Clarity (7 bars). AUD/JPY is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support zone described below.
As can be seen from the daily AUD/JPY chart below, the bottom of this Down Channel formed when the pair reversed up from the support area lying between the key support level 87.80 (with reversed the price with the daily Morning Star earlier this month), 38.2% Fibonacci correction of the upward impulse from the start of July and the support trend line of the daily up channel from June. The proximity of the support zone adds to the probability AUD/JPY will continue to rise inside this Down Channel.
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