Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to fall inside the clear daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the above-average Initial Trend (6 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). AUD/JPY is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily AUD/JPY chart below – the price earlier reversed down from the resistance area lying between the key resistance level 76.30 (which has been reversing the price from May), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous sharp downward impulse from April. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Up Channel.