Daily Forex Update: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the Clear Falling Wedge chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Falling Wedge at the 6 bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). The pair is expected to continue to fall inside this Falling Wedge – in line with the technical analysis shown on the daily AUD/JPY chart below.
As you can see from the daily AUD/JPY chart below, the top of this Falling Wedge formed near the strong resistance zone lying between the major resistance level 87.50 (which also reversed the price in December) and the upper daily Bollinger Band. The price today broke the support zone lying between the support level 84.00 and the 38.2% Fibonacci correction of the upward impulse from November – which adds to the probability AUD/JPY will continue to fall inside this Falling Wedge.
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