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AUDJPY Fills Weekend Gap, Turns Lower

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Like all Yen pairs, AUDJPY experienced a major weekend gap to start the trading week. The 120 pip gap came just after the pair had broken down from a wedge pattern that formed during the month of June.

However unlike most of the other Yen pairs, AUDJPY was able to fill the gap during yesterday’s session. That bullish momentum was short-lived as sellers rushed in to sell anything above former support at 94.55.

Now that the dust has settled we can see that the selling pressure carved out a bearish pin bar at support-turned-resistance. This pattern comes on the heels of the break of wedge support on June 26th, which hints at the idea that the bearish trend is set to continue.

Note that Australia’s trade balance is due shortly at 9:30pm EST, so expect increased volatility at that time. In addition, Friday is a US bank holiday so the next 24 hours should be telling for AUDJPY.

Summary: Opportunity to trade yesterday’s bearish pin bar at resistance. Key support comes in at 93.75, 93.00 and 91.75. On the flip side, a move above 95.00 would negate the setup.

AUDJPY bearish pin bar on the daily chart

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4 comments
Benson Ang says

Thank you JUSTIN!!! Awesome, i have been following your price actin strategy on AUD/JPY & GBP/CAD, and they are all in the $$$ for me!!! Appreciate your sharing and i will sign up your course and membership soon.

Reply
    Justin Bennett says

    Hi Benson,

    Great to hear and you’re welcome. I look forward to seeing you on the inside shortly.

    Have a great weekend.

    Justin

    Reply
Chris says

Justin, I am a novice trader who has been following the advice of a number of people online, and so far you are the only one who has given me an exceedingly profitable trade. I am currently in profit for more than $200.00 on AUD/JPY, thanks to you informing me about the pin bar. While I am only using a demo account at this time, it’s still good to see positive results like this. I look forward to receiving more updates from you.

Reply
    Justin Bennett says

    Hi Chris,

    Nice to hear. Pin bars are where I got my start with price action as well. They make for a great foundation that will allow you to eventually branch out into other price action strategies/patterns.

    Cheers,

    Justin

    Reply
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