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AUDJPY Consolidation Could Produce 400 Pip Move

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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Like other yen crosses, the AUDJPY is in a period of consolidation. The pair is carving what appears to be a wedge pattern following the 850 pip decline that occurred between late January and March.

While it looks promising at the moment, it’s important to remember that more “touches” are needed. With only two points of contact on each side, it isn’t a very well defined structure, at least not yet.

However, I do think that a retest of resistance near 83.40/50 would trigger an influx of selling pressure. Likewise, a move to support near 81.40/50 would likely attract buyers.

Given the recent 850 pip selloff, this wedge may represent a continuation pattern. Either way, at 400 pips from top to bottom, a breakout in either direction could produce a favorable opportunity.

Keep in mind that if you trade end of day charts as I do, a “breakout” is a daily close (using New York close charts) above resistance or below support. It isn’t enough to see an intraday move beyond the level in question.

The current scenario I’m working with is that an upside break would target the 87.50 area while a downside break would expose 77.50. That’s using the 400 pip height of the pattern and measuring from a probable breakout point.

Of course, those are just best guesses. We won’t be able to define an actual target until the AUDJPY breaks free from consolidation.

That also assumes that this is indeed a wedge pattern. The way the pair reacts to support and resistance over the coming days and weeks will help us determine the answer to that.

For now, this is one for the watch list.

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AUDJPY wedge pattern on the daily chart

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16 comments
Syed+Hassan says

Thank you sir

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    Justin Bennett says

    Cheers.

    Reply
Mahad says

eyes still watching

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Don says

Agreed AJ does well with patterns

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Hi Justin, I just want to appreciate your kindness - sharing your thoughts and helping traders. Am unable to download you 'Cheat Sheet' kindly sent me on my email. Thanks for your great service, best wishes. says

Madueke

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    Justin Bennett says

    Are you receiving an error message? It appears to be working fine for me.

    Reply
      Clair says

      hi Justine, i would like to follow you

      Reply
Olufemi Michael says

i want to believe this is not a symmetrical triangle on a downtrend which is bearish. Thanks

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Njivane says

Thank you for sending me your thoughts I’ve been using it last week and it’s worked

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John says

Thanks Justin, am learning alot this past one week

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Samuel says

Thanks,Please Sir what is the SMA you uses.

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    Emuobo Agbahovbe says

    10 and 20 EMAs

    Reply
Suvan says

Hi Justin…what are your EMA s that u use onyour main chart for Daily readings?.

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Abraham says

Thanks sir for your hard working

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derrick says

well done sir

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Felix Great says

Thanks very much Justin. God bless you.

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