Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars) and strong Uniformity and Clarity (7 bars) AUD/JPY is expected to rise further inside this Down Channel.

As can be seen from the daily AUD/JPY chart below – the bottom of this Down Channel formed when the price reversed up from the support area located between the key support level 79.00 (previous monthly low from September) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability AUD/JPY will continue to rise inside this Down Channel.