AUDJPY Losing Streak Continues; Breaks Key Support Intraday

by Justin Bennett  · 

June 19, 2018

by Justin Bennett  · 

June 19, 2018

by Justin Bennett  · 

June 19, 2018


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

Click here to get access to the same charts I use.

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On Friday I published a rather extensive commentary on the AUDJPY. The idea was to watch for a breakout from the recent consolidation that has persisted over the last few months.

That consolidation, by the way, has carved a smaller ascending channel which has the look of a bear flag. If true, it puts the objective at the 76.00 handle.

When I published that commentary on Friday, the AUDJPY was still trading at 82.33. Today we see the risk-sensitive pair hovering just below the 81.00 handle.

Not only has the pair lost ground in four straight sessions, but it’s also trading below the ascending channel support I mentioned on Friday.

However, as always, the daily close (New York 5 pm EST) is key. There’s still plenty of time for the market to recover back above that 81.20 area.

If the pair does close below channel support at 5 pm EST, it opens the door to lower levels including the objective that’s 500 pips below the current price at 76.00.

Note that the current 2018 low at 80.50 could attract some buyers. In fact, that’s what we see happening at the moment with this 40 pip bounce.

I remain short from last week and will consider adding to the position following a daily close below ascending channel support. As long as the broader descending channel is intact, a move to 76.00 over the next few weeks is a real possibility.

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AUDJPY two channels


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14  Comments

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  1. Hi Justin.

    First comment.

    There appears to be a long term trend line from the 2008 low and the June 2016 low which appears to cross the descending channel at 77.892 cutting off the76.031 target.

    What do you think?

    Pete

    1. Yes, I’ve seen it, but the yen crosses haven’t respected long-term trend lines very well of late. Look no further than the NZDJPY.

  2. great stuff Justin…..I can tell you that as a harmonic pattern trader, I can see all this….. you are absolutely spot on!

  3. Hey Justin thanks for the great work…I sent an email and asked if there is any way i can use the western union as a means of payment to join your wonderful community…I have not seen any reply from you…Please help

  4. Justin, the 81.20 level has just been retested…. I am suspicious because it broke and retested on the same day only different sessions….but lets wait for how it plays out at the end of New York session

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