By: Dima Chernovolov
AUD/JPY continues to fall inside the 15-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 10-bar level – which is the result of the maximum Initial Trend and Uniformity (10 bars) and strong Clarity (9 bars). AUD/JPY is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily AUD/JPY chart below, the price earlier reversed down sharply (maximum Initial Trend reflects this) from the key resistance area lying between the key resistance level 78,50 (which stopped the sharp uptrend in August) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/JPY will continue to fall inside this Down Channel.