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AUDJPY Terminal Pattern Offers Bears a Second Look

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I’m loving this AUDJPY rising wedge that has been forming on the 4 hour chart since early February. The levels are clean and the pattern fits perfectly within the broader AUDJPY decline.

Patterns such as this most often signal a continuation of the preceding trend. Given the fact that this pair has been in a major downtrend since late last year, I feel confident sticking with that approach.

From here we can look for a 4 hour close below wedge support as an entry signal. My first target will be the February low at 89.35 with a long-term target focused on the 2013 lows at 86.35.

AUDJPY weekly chart:

AUDJPY weekly forex chart

If the pair manages a 4 hour close below wedge support and then closes back above the same level during the next 4 hour period, the short setup will be invalidated.

Summary: Wait for a 4 hour close below wedge support and then watch for a retest as new resistance. Key support comes in at 89.35 with the potential for a run to the 2013 lows at 86.35.

AUDJPY 4 hour forex chart

NZDUSD analysis

NZDUSD 4 hour forex chart

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