If you’re looking to catch the Aussie rally at a good price, this could be your chance, mate! AUD/JPY just stalled around the major psychological resistance at 83.00 and seems to be pulling back for a quick retracement. If that’s the case, AUD/JPY might be able to find support at the 61.8% Fib, which is in line with a former resistance level. Stochastic is almost in the oversold region but is still pointing down, suggesting that Aussie bears could take the pair a bit lower.
Is that a bearish pennant I’m seeing? Let me polish my groovy shades to get a better view. It does look like Swissy bulls are mustering more energy for another USD/CHF breakdown as the pair is currently consolidating between the .9250 and .9300 levels. If you’re betting on a breakdown, make sure you review our School of Pipsology lesson on Trading Breakouts first!
USD/JPY has been crawling inside a falling channel on its daily chart and it looks like the pair is testing the top of the channel right now! However, stochastic has yet to reach the overbought zone, which means that dollar bulls aren’t done with their rallies just yet. If you plan to play this long-term falling range, make sure you wait for stochastic to turn and point downwards to make sure you won’t get faked out!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.