AUDJPY is coming to a make or break range in a month where historically, the Auzzie Dollar does not perform well.
Current price is only 40 pips away from a stonewall ceiling that it has failed to breach since coming below it in May 2019 (76.80-85). Also, adding further cement to the ceiling is the falling daily 800ema EMA sitting around 77.
However, given the current consolidation and ranging we've seen over the last number of weeks, I'm not short just yet.
The ascending trendline dating back to the beginning of May would have to be broken for me to turn bearish and breaking out of the triangular structure.
So, confirmation for buying:
DAILY CANDLE BODY close above the 76.85 level and current 0% point on our Fibonacci Retracement.
Target would be around 70 pips away initially at the 23.6% level where the daily 800 EMA sits at 77.50.
Confirmation for selling:
DAILY CANDLE BODY close below the ascending trendline thus invalidating the triangle structure and also breaking the higher high/ higher low formation currently happening in the trend.
Target here would be around 100 pips below at the key psychological 75.00 price handle and also 61.8% level which represents the usual pullback after a break of structure alongside the rising 50 EMA.
Current price is only 40 pips away from a stonewall ceiling that it has failed to breach since coming below it in May 2019 (76.80-85). Also, adding further cement to the ceiling is the falling daily 800ema EMA sitting around 77.
However, given the current consolidation and ranging we've seen over the last number of weeks, I'm not short just yet.
The ascending trendline dating back to the beginning of May would have to be broken for me to turn bearish and breaking out of the triangular structure.
So, confirmation for buying:
DAILY CANDLE BODY close above the 76.85 level and current 0% point on our Fibonacci Retracement.
Target would be around 70 pips away initially at the 23.6% level where the daily 800 EMA sits at 77.50.
Confirmation for selling:
DAILY CANDLE BODY close below the ascending trendline thus invalidating the triangle structure and also breaking the higher high/ higher low formation currently happening in the trend.
Target here would be around 100 pips below at the key psychological 75.00 price handle and also 61.8% level which represents the usual pullback after a break of structure alongside the rising 50 EMA.