AUDJPY Breaks Key Support, Targets 83.73The AUDJPY appears to have broken a key support level. The 85.35 handle has been a critical factor for the pair since the start of 2017 and yesterday’s close at 85.32 should continue to attract selling pressure.
But as you may well know, what we sometimes think are precise levels are instead areas of support or resistance. So yesterday’s close being just 3 pips below 85.35 leaves me too skeptical to do anything at the moment.
Also, the yen cross is now 140 pips below the mean as measured by the 10 and 20 EMAs. With this in mind, I’d rather wait for a more convincing close below 85.35 followed by a retest of the area as new resistance.
The next key support level comes in at the December 29th low of 83.73. This area also attracted a bid in late November and early December of last year. A close below 83.73 would expose the mid-November highs at 82.50.
Right now the technical landscape for the AUDJPY is favorable, to say the least. The pair has been respecting the key levels mentioned above, and the recent breakdown presents a potential selling opportunity.
But perhaps even more favorable than the levels is the fact that other risk-sensitive pairs are showing signs of weakness. Some of the best trades can occur when the yen pairs begin to move in tandem.
Look no further than the rally that ensued from the November 9th U.S. elections.
Audjpydaily
AUDJPY remain bullish above strong supportBuy above 86.17. Stop loss at 85.80. Take profit at 87.17.
Reason for the trading strategy (technically):
We remain bullish above 86.17 support (Fibonacci retracement, horizontal swing low support) where we expect a bounce from to at least 87.17 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (55,5,3) is seeing strong support above the 10% level where we hope to see a further bounce from.
AUDJPY testing major resistance, prepare to sellSell below 87.40. Stop loss at 87.71. Take profit at 86.67.
Reason for the trading strategy (technically):
Price is testing major resistance at 87.40 (Fibonacci retracement, horizontal resistance, Fibonacci extension) and we expect a reaction from this level for a drop towards 86.67 support (Fibonacci retracement, horizontal overlap support).
Stochastic (21,5,3) is seeing major resistance at the 96% level.
AUDJPY profit target reached, time to turn bearishSell below 86.68. Stop loss at 87.10. Take profit at 85.90.
Reason for the trading strategy (technically):
Price made a bounce and reached our profit target perfectly yesterday. We now prepare to turn bearish below 86.68 resistance (Fibonacci retracement, Fibonacci extension, horizontal pullback resistance) for a further drop to 85.90 support (Fibonacci retracement, horizontal overlap support).
RSI (34) is seeing descending resistance hold price down.
AUDJPY right on strong support, time to buyBuy above 85.88. Stop loss at 85.34. Take profit at 86.72.
Reason for the trading strategy (technically):
Price is now above major support at 85.88 (Fibonacci retracement, horizontal pullback support) and we expect to see a bounce from here to at least 86.72 resistance (Fibonacci retracement, horizontal pullback resistance).
RSI (34) is seeing strong support above the 32% level where we expect a bounce from.
AUDJPY profit target reached perfectly, prepare to turn bearishSell below 87.48. Stop loss at 87.80. Take profit at 86.39.
Reason for the trading strategy (technically):
Price bounced up perfectly and reached our profit target as expected. We now prepare to turn bearish below 87.48 resistance (Fibonacci retracement, horizontal overlap resistance, Fibonacci extension) for a push down to 86.39 support (Fibonacci extension, horizontal swing low support, Fibonacci retracement)>
Stochastic (21,5,3) is seeing strong resistance below the 97% level.
AUDJPY prepare to buy above major supportBuy above 86.34. Stop loss at 85.92. Take profit at 87.48.
Reason for the trading strategy (technically):
We prepare to turn bullish above major support at 86.34 (Fibonacci retracement, Fibonacci extension) for a push up to 87.48 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (21,5,3) is seeing strong support above our 6% level signalling a bounce is impending.
AUDJPY below strong resistance, turn bearishSell below 87.05. Stop loss at 87.56. Take profit at 86.076.
Reason for the trading strategy (technically):
We are bearish below 87.05 resistance (Fibonacci retracement, horizontal pullback resistance) for a push down to 86.07 support (Fibonacci retracement).
Stochastic (21,5,3) is seeing a nice reaction from the 95% level.
AUDJPY profit target reached perfectly, prepare to turn bearishSell below 86.72. Stop loss at 85.98. Take profit at 87.10.
Reason for the trading strategy (technically):
Price has reached our profit target perfectly from yesterday. We prepare to turn bearish below 86.72 resistance (Fibonacci extension, horizontal swing high resistance) for a push down to 85.89 support (Fibonacci retracement, horizontal overlap support).
Stochastic (21,5,3) is seeing strong resistance below the 95% level.
AUDJPY right above support, remain bullishBuy above 85.34. Stop loss at 84.97. Take profit at 86.08.
Reason for the trading strategy (technically):
We remain bullish above 85.34 support (Fibonacci projection, horizontal support) for a push up to at least 86.08 (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is bouncing nicely above strong support at 5.5%.
AUDJPY profit target reached, time to go bullishBuy above 85.34. Stop loss at 84.97. Take profit at 86.08.
Reason for the trading strategy (technically):
Price reached our profit target for the 4th time in a row. We turn bullish above 85.34 support (Fibonacci projection, horizontal support) for a push up to at least 86.08 (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is approaching strong support at 5.5%.
Audjpy Short On BreakoutAnalysis And Research
We Expect that if Aud/jpy crosses lower trend line then we will be happy to go short from that point unless right now it is in consolidation zone and lots of noise we can see onto this zone .
We will let it pass through all noise then we are gonna short it straight towards take profits @ Flag.
AUD/JPY, DAY CHART, LONG (11-DEC-2016)Note: It is a potential Break Setup.
There is a strong resistance zone at 86.2xx area.
We need to pay attention whether this pair able
to break this resistance zone.
There are 2 ways to trade this pair
1. If the price able to break the resistance zone,
wait for pullback to the resistance zone and
bullish signal to long
-Can long after breakout with small lot size
-Can long after breakout followed by weak pullback to the resistance with small lot size
-Can long when the bullish bar appeared after the pullback with right lot size
2. If the price bounce back from resistance,
can long when the price touch on the 20-EMA
followed by a bullish signal bar. (little chance)
AUDJPY, a rising wedge formationThe rising wedge, is one of the most popular, but difficult consolidation correction pattern formation. Rising wedge formations are identified using two up-sloping trendline. In the case of AUDJPY it is in the developing as well. Multiple touches on both sides of the trendline is visible.
Right now, we are following this pair and expecting a breakdown, which will sooner or later touch the bottom trendline.
Further updates will be provided as the process develops.
Trade with care.