Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to rise inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which reflects the slow Initial Trend (4 bars), low Uniformity (1 bar) and significant Clarity (7 bars).  AUD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance level shown below.

As can be seen from the daily AUD/JPY chart below – the price earlier broke above the pivotal resistance level 75.00 (which has been reversing the price from the middle of June). This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the active daily uptrend heighten the probability AUD/JPY will continue to rise inside this Up Channel.