Trade of the Day: AUD/JPY

AUD/JPY continues to fall inside the 30-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and strong Clarity (7 bars). AUD/JPY is expected to fall further inside this Falling Wedge.

As can be seen from the daily AUD/JPY chart below – the pair earlier broke the support area located between the key support level 95.30 (which has been reversing the price from the end of 2022) and the 38.2% Fibonacci correction of the previous shaper upward impulse from May. This price area is acting as the resistance area after it was broken. The proximity of this resistance area adds to the probability AUD/JPY will continue to fall inside this Falling Wedge.