Daily Price Action

AUDJPY 1-Hour Channel Offers Second Chance Opportunity


Over the weekend we dissected the AUDJPY. We’ve done this a few times in recent weeks, always focusing on the trend line that extends from the 2016 low.

The ascending level broke down on May 31st and has held as resistance on a daily closing basis ever since. As such, I’ve pointed out that selling rallies, particularly that of Friday, may not be a bad idea.

As I mentioned yesterday, I’m short from 83.30 per Friday’s overextension and retest of the confluence of resistance near 83.15.

But sometimes drilling down to an intraday time frame can offer a second chance opportunity. I wrote about this concept in a recent Q&A segment.

In the case of the AUDJPY, there is an ascending channel on the 1-hour time frame that looks promising. In fact, sellers breached support recently, and the pair even retested former support as new resistance over a three hour period.

Now, whether or not trading from the 1-hour time frames fits within your rules is something that only you can answer. But there’s little doubt that the structure below was previously supporting the pair and that its failure could lead to lower prices.

By the way, I posted this channel in the member’s area several hours before the pair broke support.

From here the next key support area comes in at 82.60 followed by 81.50/80. If you missed the initial retest, waiting for a close below the 82.60 handle may be the best way to go.

Only a daily close above former trend line support near 83.20 would negate the bearish bias.

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AUDJPY channel

Leave a Comment:

bri schu says

hello Justin, thank s a lot for this nice trade aud jpy 1 hour opportunity : Jumped in a bit later but stayed in till the support you told :-).

    Justin Bennett says

    You’re welcome. Glad to hear you squeezed out a few pips on this one.

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