AUD/JPY 4H Chart: Channel Up

Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3) Sell Buy Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

The Australian Dollar is gaining value against the Japanese Yen in a short-term ascending channel. The pattern represents a new uptrend, which entered into force after the spring downfall. By this moment, the currency pair has successfully bounced off from the combined support level formed by the channel's boundary, the 55-period SMA and the weekly PP at 85.706. Therefore, the rate is expected to climb upstairs until it will reach the monthly R1 at 88.070, which is supported by the weekly R2 at 88.130. A rebound near this resistance level will signify the third confirmation point from the top. Since the pair faces no sizable barriers on its way until the above resistance and there are no upcoming fundamental events that can shake the rate, no premature rebound is expected to follow.

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