AUD/JPY 1H Chart: Channel Up

The Australian Dollar has been appreciating gradually against the Japanese Yen in an ascending channel valid since late May. Its peak was reached at 89.42 where the 2017 high is located. The given formation was breached to the downside in this session when the rate failed to overcome a resistance cluster set by the 200– and 100-hour SMAs. As a result, a newly-formed junior channel up has emerged. Even though a rate should fall after breaching a pattern, this might not be the case. Technical indicators suggest that there may still be some momentum downwards, most likely until the bottom boundary of the junior pattern, before the Hong Honk Dollar heads for the 89.00/50 area. In general, the rate is expected to trade sideways until the aforementioned high and then eventually fall in value.