Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY recently broke the 4-hour key support level 76.00, which was recently identified by Autochartist. Autochartist rates the Significance of this support level at the 6-bar level – which reflects the six precious reversals from this price level. AUD/JPY is expected to fall toward the forecast price 74.79 – in line with the earlier breakout of the support area shown below.

As can be seen from the daily AUD/JPY chart below, the price earlier broke the support zone located between the key support level 76.00, daily support trendline from June and the 38.2% Fibonacci correction of the previous upward impulse from June. This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance zone adds to the probability AUD/JPY will continue to fall toward the forecast price 74.79.