Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to fall inside the daily Down Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and significant Clarity (7 bars). AUD/JPY is expected 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, the price earlier reversed down from the resistance area lying between the key resistance level 76.00 (which has been repeatedly reversing the price from May), upper daily Bollinger Band and the 38.2% Fibonacci correction of the previous sharp downward impulse from April. The proximity of this resistance area increases the probability AUD/JPY continue to fall inside this daily Down Channel.