Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the daily Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the strong Initial Trend (8 bars), above-average Uniformity (6 bars) and near-maximum Clarity (8 bars). AUD/JPY is expected to fall further inside this Rising Wedge.
As can be seen from the daily AUD/JPY chart below, the last connecting pivot of the upper resistance trendline of this Rising Wedge formed when the pair reversed down from the resistance area lying between the key resistance level 74.50 (monthly high from September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Rising Wedge.