As I always say again and again, one of the more conservative ways to play an ascending channel is to look for buying opportunities near the channel’s support area, which is where price is currently at, so y’all better start looking. Looking at our technical indicators, stochastic is also already pointing up and moving away from oversold territory, so forex traders who are bullish on the pair may be jumping in already. As for the moving averages, they’re currently in uptrend mode, which is a confidence booster for our bullish bias on the pair.
AUD/JPY has been attempting to move past resistance at the 86.30 handle, but the said resistance area is very well-defended since it is a price area with very significant market interest. And you can see this for yourself by zooming out or moving to a higher time frame. Bullish interest is very strong, though, so price has been making higher troughs and an ascending triangle bullish forex chart pattern has now formed. If the triangle does break to the upside, then the pair could move higher for around 300 pips since that is roughly the height of the triangle.
The pair tried to move higher but kept meeting sellers along the way. The bulls kept fighting back, but the bears were just too strong, so a descending channel has now formed on GBP/JPY’s 1-hour chart. Price is currently near the bottom of the channel, though, so more conservative forex traders may wanna sit this one out. But for the more aggressive forex traders out there, just know that stochastic has already reached overbought territory, so there’s a chance that the pair will attempt a downside channel breakout. Anyhow, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.