Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which reflects the sharp Initial Trend (10 bars), lower Uniformity (1 bar) and substantial Clarity (8 bars).  AUD/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the major resistance area shown below.

As can be seen from the weekly AUD/JPY chart below – the price earlier reversed down from the strong resistance area lying between the multi-month resistance level 76.00 (which has been reversing the price from the middle of 2019) and the upper weekly Bollinger Band. The proximity of this resistance area increases the likelihood AUD/JPY will continue to fall inside this Down Channel.