Talking Points
- AUDJPY Tests Range Resistance
- Breakout Signaled Above 96.68
- Range Support Found at 96.02
AUDJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The AUDJPY has been slowly trending lower this week on Aussie weakness. This has allowed traders to look for further weakness as the pair tests key values of resistance. Currently the AUDJPY has failed to break above its daily R3 range resistance value at a price of 96.46. In the event that price begins to move lower, retracement traders and range traders alike can begin to target values of support. As seen above, range support stands at a price of 96.02, completing todays 44 pip trading range.
If market conditions change from present, traders should begin looking for an increased probability of a price breakout. A price breakout below S4 pivot support at 95.80, would signal strong momentum in the direction of the AUDJPYs current trend. As well a move above the R4 pivot at 96.68, would indicate the possibility of a broader reversal on the creation of a higher high. In either breakout scenario, traders should look to conclude any range based positions and adjust to the markets current directional bias.
Yesterdays Update
Yesterday, traders were waiting to see if the EURUSD could maintain a counter trend reversal above its R4 pivot. By the conclusion of U.S session trading, price had moved back into the trading range, indicating the creation of a false breakout. Now, the EURUSD has moved through layers of support and is attempting to breakout towards fresh lower lows. To learn more about yesterdays action, check out Tuesdays FX Reversal article linked below.
FX Reversals: EURUSD Breakout Update
---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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