Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to rise in the direction of the key hourly resistance level 80.34 (of the type Approach), which was previously identified by Autochartist. Autochartist rates the significance of this resistance level at the 3 bar level – which is the result of 3 previous reversals from this price level. AUD/JPY is expected to reach the resistance level 80.34 in the coming trading sessions – in line with the earlier upward reversal from 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 lying between the key support level 79.55 (former resistance from the end of December) and the 38.2% Fibonacci correction of the earlier upward impulse from last month. The proximity of this support area and the strong daily uptrend increase the probability AUD/JPY will continue to rise toward the resistance level 80.34.