© Dukascopy Bank SA
AUD/JPY bottomed out in the second half of May at 93 and since then it has been recovering. This rally now appears to be an upward-sloping channel.
However, there is a notable difference in reliability of the upper and lower trend-lines. While there are no questions regarding the former, as it is being constantly respected by the market, there have been no tests of the latter lately. Still, in the near term the risks are deemed to be skewed to the downside, as the Aussie is currently fluctuating near the upper edge of the pattern. Subsequently, this downward correction should be stopped at 95.11 (up-trend support coupled with daily S2) and then negated.
© Dukascopy Bank SA