Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to rise inside 15-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 5-bar level – which is the result of the strong Initial Trend (8 bars) and above-average Clarity (6 bars). AUD/JPY is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance level show below.
As can be seen from the daily AUD/JPY chart below, the price earlier broke above the key resistance level 80.85 (which stopped the previous sharp upward impulse in January). This price level is acting as the strong support level after it was broken. The proximity of this support level and the clear daily uptrend increase the probability AUD/JPY will continue to rise inside this Rising Wedge.