The daily time frame of the AUD vs JPY has closed on Friday creating a gravestone doji at the resistance level between 94.090 and 94.457. This candlestick is a representation of supply and demand being equal as price opened and closed near the low of the day. What is significant is how high price moved up but the bears overpowered the bulls and pushed the price nearly 90 pips down from the upper resistance zone at 94.457 to below the zone at 94.090 and closing at 93.599 Just the rejection is impressive and shows that the level above is a strong resistance point. On the chart you see the upper resistance zone between 94.090 and 94.457 and the lower support zone at 90.647 and 91.071 Price has been ranging within this zone since September 2013 with a few breaks but mainly maintaining within the zone. All signs indicate that price will not break the upper level of resistance and we should see a decline in price in the near future. There is the possibility for price to move upwards and test the upper zone but more long term I see a decline on the horizon. Have a great trading week and God bless!
Comments
Mirandole
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Nice pips :)
ChaosTrader63
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Overall this trade as it stands is over 200 pips profit at about 215 right now and missing the target at this point by 22 pips. I think I could live with that!
AshleyWeyers
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Great trade
ChaosTrader63
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Looks like we might fall short of the original target. This may be near the end of a pullback and now is probably getting close to looking the other way. The daily candle hasn't closed yet but the 4 hour is showing some bullish price action with the bullish engulfing candle which just closed. I prefer looking at opportunities at key levels so I have my hands folded on the long side.
AshleyWeyers
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On a monthly chart, the price has moved long off the .382 retracement level.
On the daily chart, it broke through the fractal at 92.722.
I think it will come back to test the Resistance turned Support at 92.722. If this holds, then it will continue long as trend continuation.