Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to rise inside the hourly Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bar) and strong Clarity (9 bars). AUD/JPY is expected to rise further inside this Up Channel in lien with the earlier upward reversal form the support area shown below.
As can be seen from the daily AUD/JPY chart below, the price earlier reversed up from the support area located between the key multi-month support level 74.10 (which has been reversing the price from July) and the lower daily Bollinger band. The proximity of this support area adds to the probability AUD/JPY will continue to rise inside this Up Channel.