Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to rise inside the 4-hour Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars) and lower Clarity (4 bars). AUD/JPY is expected to rise further inside this chart pattern – in line with the earlier breakout of the key resistance area shown below.
As can be seen from the daily AUD/JPY chart below, the pair earlier broke above the resistance area lying between the resistance level 74.50 (which stopped the earlier sharp downward impulse wave in September) and the 38,2% Fibonacci correction of the previous downward impulse from April. The price area is acting as support zone after it was broken. The proximity of this support area increases the probability AUD/JPY will continue to rise inside this Rising Wedge.