AUD/JPY has been selling in a pattern of lower highs and lower lows on a daily chart since 11/21 and has carved out a channel. The upper trend line of that channel is about to be tested. At first glance the trend line would appear to hold. On the daily chart a “doji” has formed indicating trader indecisiveness and on the four hour chart a brief sell in the afternoon.
The next candle or two on both charts should tell us the next significant move in this pair. Respecting the trend line can mean price falling the to the 93 area where October lows we placed. If the trend line fails to hold and price rallies it is unlikely to stop at 98 and instead push through to visit 100.5 where price has consolidated before.
The next candle or two on both charts should tell us the next significant move in this pair. Respecting the trend line can mean price falling the to the 93 area where October lows we placed. If the trend line fails to hold and price rallies it is unlikely to stop at 98 and instead push through to visit 100.5 where price has consolidated before.