AUD/JPY Daily Chart
Markets

AUD/JPY Reversal Targeting Initial Support Hurdle

DailyFX.com -

Talking Points

  • AUDJPY at risk sub-86.82 - Key near-term support into 84.86
  • Updated targets & invalidation levels
  • Looking for more trade ideas? Review DailyFX's 201 7 Trading Guides . Join Michael for Live Weekly Trading Webinar s on Mondays at 13:30GMT (8:30ET)

AUD/JPY Daily

Technical Outlook: AUDJPY turned last week from the December high-day close at 86.93 with the subsequent pullback now eyeing confluence support at the lower median-line parallel / 61.8% retracement at 85.02 . The immediate downside bias is at risk heading into this region with a break below the monthly / yearly open at 84.25 needed to suggest a more significant turn is underway. Note that building bearish divergence on the weekly charts has me ultimately favoring a downside break. A breach through critical resistance at 87.55 would be needed to mark resumption of the broader uptrend.

AUD/JPY 12 0min

Notes: A closer look at prices shows the pair trading within the confines of a near-term descending pitchfork formation extending off the monthly highs with the 50-line highlighting near-term resistance at 86.29/31 (note this is also the weekly open). Bearish invalidation is now lowered to the monthly high-day close at 86.82 . Near-term support targets are eyed at 85.02 & 84.86 - both levels of interest for near-term recoveries.

Bottom line: from a trading standpoint, look to fade strength while within this formation towards the lower parallels with a break below 84.86 needed to keep the short-bias in play targeting 84.46 & the monthly open. A quarter of the daily average true range (ATR) yields profit targets of 20-23pips per scalp. Added caution is warranted heading into the Australia & Japanese CPI data later this week with the release likely to fuel volatility in the Aussie & Yen crosses.

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Clic k H ere to be added to his email distribution list .

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Learn forex trading with a free practice account and trading charts from IG .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos