By: Dima Chernovolov
AUD/JPY continues to rise inside the 4-hour Rising Wedge chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which reflects the slow Initial Trend (2 bars), average Uniformity (5 bars) and lower Clarity (4 bars). AUD/JPY is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support area highlighted below.
As can be seen from the daily AUD/JPY chart below, the pair earlier reversed up from the support area lying between the pivotal support level 72.60 (former resistance from August) and the 38.2% Fibonacci correction of the previous upward correction from last month. The proximity of this support zone increases the probability AUD/JPY will continues to rise inside this Rising Wedge.