News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • New York City Government Bonds downgraded from Aa1 to Aa2 by Moody's - BBG
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.16% Germany 30: 0.12% FTSE 100: 0.03% US 500: -0.01% Wall Street: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/xQ8olnfK5k
  • Amid global equities climbing higher, the Japanese Yen has seen demand fade, particularly after a bout of disappointing Japanese economic data. Get your $JPY market update from @CVecchioFX here: https://t.co/vBNpDHIRbq https://t.co/0Q8pHpdw3z
  • Canadian #Dollar Outlook: $USDCAD Pullback to Offer Opportunity - #Loonie Levels - https://t.co/eBhP0fhmk8 https://t.co/nE6pCQcLeH
  • Silver prices have struggled to set support over the past week, but today’s move is encouraging for Silver bulls and there may be scope for topside continuation. Get your $XAG market update from @JStanleyFX here:https://t.co/IXGwt7iWOY https://t.co/oGfeq9BhUx
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 2.91% Gold: 1.18% Oil - US Crude: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/DguhEbR3xk
  • Mnuchin and Pelosi plan to continue talks on stimulus later today - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.36%, while traders in Wall Street are at opposite extremes with 64.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/1hXd5NIVwS
  • $SPX battling it out at resistance. same zone that was in-play mid-August, and was also the prior ath set in Feb $ES $SPY https://t.co/lgu4PPk1cK
  • 🇧🇷 Balance of Trade (SEP) Actual: $6.2B Expected: $7.1B Previous: $6.6B https://www.dailyfx.com/economic-calendar#2020-10-01
AUDJPY – Bear Flag or Bear Trap?

AUDJPY – Bear Flag or Bear Trap?

2014-05-01 20:24:00
Paul Robinson, Strategist
Share:

Talking Points:

  • Bearish pattern, but…..
  • Sitting on 3-month trend-line
  • Clear levels define entry long and short

AUDJPY, it’s make or break time. Just as AUDUSD is sitting near critical support (92.00), so is AUDJPY (94.50/94.00). Assuming JPY continues its sideways meander, the Australian Dollar could drive the next move in AUD/JPY trading. In any event, the short-term pattern on the AUD/JPY chart looks like a bear flag. A bear flag is a consolidation pattern which resumes the trend of the move prior to its formation.

However, the upward trend-line could keep it supported and a bullish breakout might be in the cards if the trend-line continues to provide support, springing a trap on bears. On the other hand, as I often say, “trend-lines are to be trusted until broken”. If a break below the trend line does occur, the move could be quite explosive as the intermediate-term trend shifts lower.

AUDJPY – Daily

AUDJPY – Bear Flag or Bear Trap?

I am looking for one of the two scenarios below to play out fairly soon, maybe as soon as tomorrow, when the U.S. Employment data is released:

Breakdown – If price closes below the bottom of the bear flag (94.50) and below the rising trend-line (94) on a 4hr or daily basis, I will look to establish a short position. If this happens then I will look for a move below 92 to take place.

Breakout (Trap) – If price closes above the top of the bear flag (95.35), then bullish momentum should come in for a retest of the previous highs at 96.50.

4 HR Chart – A Closer look at the bear flag

AUDJPY – Bear Flag or Bear Trap?

Charts created by Paul Robinson using MarketScope 2.0.

In conclusion, I have more interest in selling a breakdown than buying a move higher given the clean bearish formation at trend support. With that in mind, though, we still need to see further confirmation either way before action is warranted. At this juncture, it is still speculation as to which direction will prevail.

-- Written by Paul Robinson of FXSimplified.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES