By: Dima Chernovolov
AUD/JPY continues to rise inside the daily Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which reflects the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and significant Clarity (7 bars). AUD/JPY is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the major support area shown below.
As can be seen from the weekly AUD/JPY chart below, the bottom of this Up Channel formed when the price recently reversed up from the major support area lying between the long-term round support level 70.00 (which also stopped the previous sharp downtrend in January) and the lower weekly Bollinger Band. The proximity of this support area adds to the probability AUD/JPY will continue to rise inside this Up Channel.