Daily Forex Update: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall after the earlier breakout of the 4-hour Rectangle chart pattern which was previously identified by Autochartist. Autochartist measures the Quality of this Rectangle at the 7 bar level – which is the result of the strong Initial Trend and Uniformity (both rated at the 7 bar level) and the lower Clarity (4 bars). Autochartist rates the strength of this Rectangle breakout at the maximum, 10-bar level – which adds to the probability AUD/JPY will soon reach the forecast price 84.99.
As can be seen from the weekly AUD/JPY chart below, the top of this Rectangle formed when the pair reversed down from the resistance area lying between the major resistance level 87.50 (which reversed the pair with the weekly Japanese candlesticks reversal pattern Evening Star Doji in December) and the 50% Fibonacci correction of the downward impulse from 2014. The proximity of this resistance area adds to the likelihood AUD/JPY will continue to fall toward the forecast price 84.99.
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