Trade of the Day: AUD/JPY

AUD/JPY recently broke the hourly key support level 89.65, which was previously identified by Autochartist. Autochartist measures the significance of this support level at the 4-bar level – which is the result of the four previous reversals from this price level. AUD/JPY is expected to fall toward the forecast price 88.38.

As can be seen from the daily AUD/JPY chart below – the pair earlier broke the key support level 131.30 (which has been steadily reversing the pair from last June).  This price level is acting now as the strong resistance after it was broken. The proximity of this resistance level and the clear daily downtrend add to the probability AUD/JPY will continue to fall toward the forecast price 88.38.