Potential swing trade long on AUD/JPY

AUD/JPY finally broke above trend resistance, the 200-day EMA and pivotal zone of 90.9 – 91.5. The 20-day EMA also provided support for two bullish hammers, which could mark the end of a shallow retracement from its breakout move higher. The bias remains bearish above this week’s lows and for a move towards the high around 93.

Trade closed: stop reached:

This sadly did not work out with prices moving below the support zone.

However, with the BOJ on track to put another uber-dove at the helm when Kuroda leaves, the potential for a period of yen weakness is apparent. And if the RBA are to surprise with a 50bp hike today, AUD/JPY could potentially rally.