Daily Price Action
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AUDJPY Breaks From Rising Wedge, Targets 85.35

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Just two sessions ago the AUDUSD carved out a bearish pin bar from support turned resistance. The trade has played out in textbook fashion so far, and now it seems the AUDJPY is following in its footsteps with some bearish price action of its own.

The rising wedge that extends from the December 2016 low broke down yesterday. These patterns often signal exhaustion and at least a correction of the current trend.

I first mentioned this formation on February 27th. At the time the pair was testing support for the second time. But without a daily close below the level, I decided to stay on the sideline.

However, yesterday’s close at 86.08 leaves me watching for a selling opportunity on a retest of the area as new resistance. As mentioned last month, key support from here comes in at 85.35 followed by 83.73.

The upcoming CPI and PPI figures out of China at 8:30 pm EST could cause a stir. So you may want to keep these two events in mind if looking for an entry during the Tokyo session.

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AUDJPY rising wedge

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2 comments
Carol Capner says

Hi jason.
I feel the break on the Audjpy indicates a buy, rather than a sell on the daily.
I would have liked it to have been a clear sell; would have been in line with the expectation of the monthly ( It failed to hit support)
Nevertheless, this pair WILL fall due to its habit over many years, Its a matter of time rather than when, which may not be that far off. This is just my view..

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Ric says

More interested to see if price makes a break to the down-side on the weekly, it’s getting there but not quite yet then agree with the targets of 85.xx then 83.xx.

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