Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which reflects the significant Initial Trend (7 bars), slow Uniformity (1 bar) and above-average Clarity (6 bars). AUD/JPY is expected to fall further inside this Up Channel.
As can be seen from the daily AUD/JPY chart below – the price earlier reversed down from the resistance area set between the key resistance level 1.307 (which has been reversing the pair from April) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic increase the probability AUD/JPY will continue to fall inside this Up Channel.