Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to rise inside the 4-hour 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 slow Initial Trend (2 bar), strong Uniformity (8 bars) 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 levels shown below.
As can be seen from the AUD/JPY chart below, the price earlier broke the resistance trendline of the daily Falling Wedge chart pattern from September – which added to the bullish pressure on this currency pair. The upper trendline of this Falling Wedge is acting as the support trendline after it was broken. The proximity of this support trendline and the strength of the daily uptrend increase the probability the AUD/JPY will continue to rise inside this 4-hour Up Channel.