AUD/JPY HIT MONTHLY SUPPORT, POTENTIAL FOR RALLY
Updated
The US-Sino trade war tensions have resulted in a very bad year for currencies worldwide. The Aussie Dollar is one of the most vulnerable currencies to be caught in the crossfire. Every time news comes out about how the two world leaders couldn't make any positive progress in the negotiations, which is pretty often, AUD dives down to key support levels. This negative price action is amplified by Australia's poor economy. There's plenty of reasons why we should assume AUD shouldn't have a positive outlook for the coming weeks.
However, the tables might finally be turning. The Yen (JXY) has been weak lately and I expect it to continue getting weaker. A weaker yen should translate into bullish price action on AUDJPY. AUD/JPY tested monthly support for the third time this year. Last month's monthly candle closed bullish and the last weekly candle, although bearish, closed above the higher support zone.
nsteg
I entered buy positions at 74.15 with a stop loss at 73.75. Take profit 1 is set at 75.30 and with the potential to go even higher to test the next resistance zone, take profit 2 is set at 76.12.
However, the tables might finally be turning. The Yen (JXY) has been weak lately and I expect it to continue getting weaker. A weaker yen should translate into bullish price action on AUDJPY. AUD/JPY tested monthly support for the third time this year. Last month's monthly candle closed bullish and the last weekly candle, although bearish, closed above the higher support zone.
nsteg
I entered buy positions at 74.15 with a stop loss at 73.75. Take profit 1 is set at 75.30 and with the potential to go even higher to test the next resistance zone, take profit 2 is set at 76.12.
Trade closed: target reached
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