AUDJPY Looking To Break Range To Target 81.000 level!
AUDJPY is currently range trading that is visible by looking at the 4hr and daily timeframes. Looking at the main chart it can be seen that the price is confined in between the blue lines (range). Shall a breakout of the range occur to the upside, the price will look to target the 81.000 area where the weekly EMA 50 is present. Have a look at the snapshot of the weekly charts below:
From the chart above, the price is confined in a descending channel and is currently en-route to testing the dynamic EMA 50. Furthermore, the 78.000 psychological level is a concrete support drawn from the monthly charts which has been rejected on too many occasions notably most recently on the monthly candle and the flash crash that happened last month.
A LONG position is favored only if the range breaks to the upside, in other words the daily candle and NOT the 4hr Candle must close outside of the range on the daily charts. Followed by a slight retracement before we could execute a LONG entry. In the future if the price decisively closes above the weekly 50 EMA we could take this pair LONG towards the descending trendline of the main weekly channel.
RISK ON appetite in the market would make AUD more valuable in comparison to safehaven yen which tends be sold off more together with GOLD AND CHF, therefore if a trade deal is made which is a likely scenario we can expect the AUD to rally against the YEN.
This just represents my analysis for this pair, shall the opportunity arise i will post the entry criteria in a new thread. stay tuned and cheers
From the chart above, the price is confined in a descending channel and is currently en-route to testing the dynamic EMA 50. Furthermore, the 78.000 psychological level is a concrete support drawn from the monthly charts which has been rejected on too many occasions notably most recently on the monthly candle and the flash crash that happened last month.
A LONG position is favored only if the range breaks to the upside, in other words the daily candle and NOT the 4hr Candle must close outside of the range on the daily charts. Followed by a slight retracement before we could execute a LONG entry. In the future if the price decisively closes above the weekly 50 EMA we could take this pair LONG towards the descending trendline of the main weekly channel.
RISK ON appetite in the market would make AUD more valuable in comparison to safehaven yen which tends be sold off more together with GOLD AND CHF, therefore if a trade deal is made which is a likely scenario we can expect the AUD to rally against the YEN.
This just represents my analysis for this pair, shall the opportunity arise i will post the entry criteria in a new thread. stay tuned and cheers
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