AUD/JPY Pending Daily Breakout
Market Condition: Pending Breakout
Target 1: 2x ATR 90.09
Target 2: 4x ATR 91.57
Invalidation: 1X ATR at 88.61
AUDJPY 1Day Chart
(Created using Marketscope 2.0 Charts)
The AUDJPY is currently trading at November highs, and trading just below the October high at 88.61. This value is currently acting as resistance for the pair, and a movement above this value will provide traders an opportunity to trade a new breakout to higher highs. Current 1x daily ATR reads at 74 pips. This means traders looking for a 2x ATR extension on a breakout can begin to set initial targets at a prices of 90.09. Secondary targets using a 4x extension of ATR can set near 91.57.
Today’s breakout is predicated on a move about resistance at 88.61. If prices fail to breach this value any breakout entries into the market would be considered invalidated. Conversely, if prices breach resistance, this value would then act as support in any ensuing uptrend. In this scenario, traders may look to manage risk by placing a stop 1x ATR below previous resistance (new support) at a price of 87.87. At this point any bullish breakouts would be considered at least temporarily invalidated.
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