© Dukascopy Bank SA
Already for more than 200 hours the Australian Dollar has been strengthening relative to the Japanese Yen. This has led to emergence of a high-quality bullish channel. And apart from the pattern implying further appreciation of the Aussie, most of the four-hour technical indicators and as many as 64% of traders are supporting extension of the current rally.
However, the up-move is unlikely to be immediate. AUD/JPY is expected to undergo a bearish correction first. Before gaining a bullish momentum the price should touch the lower up-trend line at 94.09. Then it will be in a good position to challenge the resistance area stretching 20 pips north from 95.40.
© Dukascopy Bank SA