Daily Price Action
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AUDJPY Carves Rising Wedge on the Intraday Charts

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The AUDJPY sold off heavily last week following the retest of the (new) area of resistance between 87.90 and 88.00. We discussed the idea of selling the pair from this area in the August 6th weekly forecast.

With Friday’s test of key support at 85.80, our attention turns to new resistance at the 87.00 handle. As I mentioned last week, recent yen strength has me focused on buying the currency and the 87.00 area looks like a prime area to short the AUDJPY.

However, one thing that caught my attention today is the rising wedge that’s forming on the intraday charts.

AUDJPY 1-hour chart

I don’t often trade the 1-hour chart, and I’m not sure I will here should sellers break wedge support. But it is an option should the yen continue to strengthen later this week.

So, for now, there are two ways to play this. The first is to simply watch for a sell signal on a retest of the 87.00 resistance area. The second is to wait for a close below 1-hour wedge support as shown in the chart above.

Key support comes in at 85.80 followed by 83.85. There is also an area near 84.50 that could attract buyers on the way down. Only a daily close (5 pm EST) above 87.00 would delay the bearish outlook here.

Keep in mind that Wednesday features the Australia employment change and the unemployment rate at 9:30 pm EST. These two events usually cause a big stir, so be sure to keep them on your calendar.

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AUDJPY daily chart

Leave a Comment:

4 comments
Philani says

Hi Justine,
Thank you so much for the 7 Secrets of Consistent Forex Profits webinar. It made so much difference in my trading life. Thank you!!! You’re the best.

Reply
    Justin Bennett says

    You’re welcome, Philani. Glad to help.

    Reply
Luka says

Same thing is confirmed with equidistant chanel on daily chart. But 1h wedge is broken right now due to AUD positive news.

Reply
    Justin Bennett says

    Correct, so it’s probably best to stand aside for now.

    Reply
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