AUD/JPY Ready to retest 88.400?
OUTLOOK: Daily Chart
AUD/JPY is posing some interesting setups. The daily chart displays a textbook rising wedge chart pattern (blue dotted lines),
which AUD/JPY broke through 5 days ago. So even though the overall trend is bearish , the market is currently in 'Pull back mode'
and is likely to retest the 88.400 area (Red rectangle) before continuing its bear trend.
Note: Keep an eye out for bearish evidence at the 88.400 level before entering this trade.
CONCLUSION: Bearish bias pending daily resistance retest.
BEAR INDICATORS:
1. Rising Wedge Chart Pattern - marked by blue dotted lines
2. Three black crows - found at the tip of the rising wedge pattern
3. Bearish engulfing - engulfing the previous candle on daily chart
4. Bearish engulfing - evident on the weekly chart
BULL INDICATORS:
1. Bullish pin bar ( daily chart )
2. Price rejects 86.753 area, a key monthly/daily support level - marked by red dotted line.
AUD/JPY is posing some interesting setups. The daily chart displays a textbook rising wedge chart pattern (blue dotted lines),
which AUD/JPY broke through 5 days ago. So even though the overall trend is bearish , the market is currently in 'Pull back mode'
and is likely to retest the 88.400 area (Red rectangle) before continuing its bear trend.
Note: Keep an eye out for bearish evidence at the 88.400 level before entering this trade.
CONCLUSION: Bearish bias pending daily resistance retest.
BEAR INDICATORS:
1. Rising Wedge Chart Pattern - marked by blue dotted lines
2. Three black crows - found at the tip of the rising wedge pattern
3. Bearish engulfing - engulfing the previous candle on daily chart
4. Bearish engulfing - evident on the weekly chart
BULL INDICATORS:
1. Bullish pin bar ( daily chart )
2. Price rejects 86.753 area, a key monthly/daily support level - marked by red dotted line.