Trade of the Day: AUD/JPY
By: Dima Chernovolov
AUD/JPY continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the significant Initial Trend, Uniformity and Clarity (all rated at the 7 bar level) AUD/JPY is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily AUD/JPY below, the price earlier reversed up from the support area lying between the key support level 1.7400 (which has been reversing the price from the end of January) and the lower daily Bollinger Band. The proximity of this support area increases the probability AUD/JPY will continue to rise inside this Down Channel.
