themarketzone
Long

500 pips after hitting trend line - What's next

FX:AUDJPY   Australian Dollar/Japanese Yen
$AUDJPY's 500 pips free fall started when the pair touched a weekly structure resistance , a daily downtrend line, the top of a ascending channel , the 200 days MA line and.. created a False Break with a successful Kiss of Death setup (critical point marked with arrow) - Very good bearish setup I didn't trade only because I was open on $CHFJPY and $CADJPY already.

Now, $AUDJPY is about to test a weekly structure support , which is also an important psychological number and the completion zone of a weekly bullish harmonic trading pattern

It may take some time to develop, but $AUDJPY is maybe setting another weekly reversal.

Now that $AUDJPY is approaching 80 again, it may create a weekly Kiss of Life setup that will be even more powerful than the previous setup.
In order not to try and catch a "falling knife", the key is to either wait for a weekly reversal pattern or at least a daily one. As you can the latest rally that led AUDJPY             from 80 to 87 started after a daily Pinbar pattern

There are rumors and talks about another BOJ intervention to weaken the JPY. I'm not sure that they have any tools left in their arsenal but no doubt that BOJ intervention can be the trigger that will send $AUDJPY towards its final weekly target zone - 90-91.

Tomer, The MarketZone
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