Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to rise inside the uniform 4-hour Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and medium Clarity (5 bars). AUD/JPY expected to rise further inside this Rising Wedge – 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 the key resistance level 76.80 (which previously reversed the price in June and July, as can be seen below). This price level is acting as the strong support after it was broken. The proximity of this support level and the strength of the active daily uptrend increase the probability AUD/JPY will continue to rise inside this Rising Wedge.