AUD/JPY is consolidating in what looks like a symmetrical triangle after falling by around 150 pips in the last few days.
Are we looking at a bearish pennant in the making? For newbies out there, know that pennants like this tend to extend an asset’s previous trends after a consolidation.
It doesn’t look like the sellers are in the house just yet, so y’all still have time to design trading plans if you’re planning on trading this one.
If AUD/JPY breaks below the triangle, we could be looking at a 100-pip move (the height of the base of the triangle) all the way to 72.50.
If Aussie bulls seize the day (or at least momentum), however, then we could see AUD/JPY test higher points of resistance closer to the 200 SMA or even the 75.00 previous area of interest.
Here’s a nice and simple range play for ya! Pound bears are doing a great job of defending the 1.2975 handle, which has been serving as resistance since mid-October.
Is the nth time the charm for the bulls? Stochastic is currently on the sellers’ side with an overbought signal, but you never know when an event pops up to boost the pound, namsayin’?
If you’d rather buy the pound against the dollar, though, then you could also wait until Cable breaks above 1.2975 resistance and 1.3000 MaPs and aim for a possible move to the 1.3200 previous resistance levels.