Daily Forex Update: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to fall after the recent breakout of the uniform Triangle chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Triangle at the 5 bar level – which is the result of the slow Initial Trend (3 bars), near-maximum Uniformity (9 bars) and lower Clarity (1 bar). Autochartist rates the strength of this breakout at the 8-bar level. AUD/JPY is expected to fall to the Forecast Price 82.88 in the coming trading sessions. 

As can be seen from the weekly AUD/JPY chart below – both of the connecting points of the upper  trendline of this Triangle formed when the pair reversed down from the powerful resistance level 86.30 – which created multiple weekly Japanese candlesticks reversal patterns from the start of 2016 (2 Bearish Engulfing patterns and most recently – Evening Star). The proximity of this resistance level increases the probability AUD/JPY will soon reach the Forecast Price 82.88. 

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