AUD/JPY 1H Chart: Channel Up
- The Australian Dollar is trading against the Japanese Yen in a small ascending channel.
- The pattern formed in the result of a 100-pips depreciation of the Aussie amid a speech delivered by the RBA Assistant Governor Kent.
- At the moment, it consists of two reaction highs and lows and, thus, might be broken in the nearest future.
- The fact that the pair failed to break through the 55-hour SMA near 87.01 allows assuming that the breakout will eventually occur in the southern direction.
- If this is true, then the current channel represents only a part of a larger flag pattern.
- In that case, the downward movement should end up only at the weekly S3 at 85.85 or slightly below it.
- Such outcome would be in line with the general market sentiment, as 74% of traders hold short positions on this currency pair.
