By: Dima Chernovolov
AUD/JPY has been rising inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (one bar), below-average Uniformity (4 bars) and higher Clarity (6 bars). AUD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward breakout of the resistance area highlighted below.
As can be seen from the daily AUD/JPY chart below, the price earlier broke through the resistance area located between the resistance level 86.80 (former support from October), resistance trendline of the daily down channel from September and 38.2% Fibonacci correction of the previous downward correction from September. This price area is acting as support zone after it was broken. The proximity of this support area increases the probability AUD/JPY will continue to rise inside this Up Channel.
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