I Expect An AUD/JPY Rally

The AUD/JPY pair is at a strong support in the zone around 82.30 – 81.90. That can be clearly observed on the H4 and D1 time frames.

At the same time the pair is also clearly forming a trend channel on the H4 time frame (in red) and it has reached the support trend line twice and resistance trend line once. I expect that there will be a rally to the resistance trend line around 83.30-83.50.

I think that in case the pair breaks out above that resistance trend line we could expect the rally to continue toward 84.80 – 85.00.

Should that scenario fail we could expect a depreciation of the pair to test the support at 80.50.