Trade of the Day: AUD/JPY

By: Dima Chernovolov

AUD/JPY continues to fall inside the 15-minute Falling Wedge chart pattern, which was earlier identified by Autochartist. Autochartist measures the quality of this Falling Wedge at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), significant Uniformity and Clarity (7 bars). AUD/JPY is expected to fall further inside this chart pattern.

As can be seen from the daily AUD/JPY chart below – the pair earlier reversed down from the resistance area located between the key resistance level 91.00 (former strong support from October and the start of December) and the 61.8% Fibonacci correction of the downward impulse from the start of December. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Falling Wedge.