Testing 83.00 on the AUD/JPY – Wating for a Breakdown

The AUD/JPY is poised to test 83.00 once again following buyers being rejected at the resistance waiting between 84.75 (R1) and 84.50 (R2). The weakness of the AUD/JPY reflects the weakening of the Australian Dollar versus the Japanese Yen. In fact, the Australian Dollar is trading lower against most major currencies thanks to a stronger U.S. Dollar pushing commodities lower; weak commodities, in turn, hurt the Aussie Dollar.

The AUD/JPY’s 240-minute chart is breaking lower through the uptrend line support of the Ascending Triangle pattern, which is formed by an uptrend line and a horizontal resistance level. The short sell trigger was 83.70 (S), but this was accompanied by very little selling momentum – we see this confirmed by the low Breakout reading of only a single bar.

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Expect prices to wander until the Friday Asian session opens and trading participation increases. The breakdown has not yet found the selling pressure it needs in order to trade lower towards the Forecast support area waiting between 81.35 and 78.61 (F). The key to downside follow-though will be the continued resistance at 84.00 – initially – followed by the prior highs of 84.50 and 84.754.

Charts courtesy of Autochartist

Have any requests, comments, or questions? Leave ‘em here at the blog!

  • fed

    Hi, what is the name of the indicator you are using? My broker is IBFX and they have a similar program called IBFX PRS but does not list the triangles and not as great as yours.

  • fed

    Hi, what is the name of the indicator you are using? My broker is IBFX and they have a similar program called IBFX PRS but does not list the triangles and not as great as yours.

  • http://www.ragheehorner.com Queen Cleopiptra

    It’s the same program except that the specific feed from the broker will offer slightly different pattern alerts and this is good because you want to be focused on the feed that is providing the bid/ask on your order entry platform to what you see is executable.

    The version I used here comes directly from Autochartist.com additionally I use the IBFX (InterbankFX) PRS plug-in on my IBFX4 version of MT4…and I should also mention I am the Chief Currency Analyst at InterbankFX. If you’re a client you can join my weekly webinar and learn more about PRS and how I trade each week.

  • http://www.ragheehorner.com Queen Cleopiptra

    It’s the same program except that the specific feed from the broker will offer slightly different pattern alerts and this is good because you want to be focused on the feed that is providing the bid/ask on your order entry platform to what you see is executable.

    The version I used here comes directly from Autochartist.com additionally I use the IBFX (InterbankFX) PRS plug-in on my IBFX4 version of MT4…and I should also mention I am the Chief Currency Analyst at InterbankFX. If you’re a client you can join my weekly webinar and learn more about PRS and how I trade each week.