The Australian Dollar has been trading in a long-term channel up against the Yen. The lower boundary of this pattern was tested during the second half of November when the rate reversed from the 84.50 area. Subsequently, it has been confined by an ascending wedge.
The Aussie continues to appreciate for the third consecutive session. This strong momentum north allowed to dash through the combined resistance of the 55– and 100-hout SMAs on Wednesday.
It seems that the pair could still edge even higher towards the upper wedge boundary circa 88.90 during the following week. The Aussie should then bounce off a medium-term channel and start a period of decline.
