Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend (3 bars), higher Uniformity (4 bars) and strong Clarity (8 bars). AUD/JPY is expected to fall further inside this Down Channel in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily AUD/JPY chart below – the price earlier reversed down from the resistance area lying between the key resistance level 76.77 (monthly top from June) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Down Channel.