Market Condition: AUD/JPY Daily Breakout
Target 1:2x ATR77.17
Target 2: 4x ATR76.18
Invalidation: Bounce From Support
(Created using Marketscope 2.0 Charts)
After consolidating for the previous 12 sessions, the Aussie Dollar is approaching support relative to the Japanese Yen. As seen in the graph above, the AUD/JPY has its low for the month of MAY at a price of 78.16. If the pair breaks below this value, it suggests that the pair may be poised to resume its current downtrend. Current, Daily ATR for the pair measures 99 pips. By extrapolating 2X ATR, initial bearish breakouts may target a move to 77.17.
If the pair bounces from support, and fails to break lower, traders may consider deleting any pending orders to sell the market. In this scenario, traders may look at the AUD/JPY as potentially consolidating in a larger range. This would open the pair up to bouncing back towards resistance near 86.40.
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