Good evening Forex Kings!
Markets are currently consolidating, the AUD, NZD and CAD have been majorly over sold against all other currencies, especially the JPY and USD.
We are now looking at another technical set up on the AUD.
AUDJPY – Daily Charts
Key notes: 71.85 is a major double bottom on the daily time frame. the RSI is signalling a bullish divergence, this is when the market price continues lower but the RSI fails to create a lower low.
AUDJPY 1 Hour Time Frame
On the hourly time frame, the 71.85 is also the 127.2% FIB extension, paired with a falling wedge. This suggesting we could see a sizeable pull back from the 71.85 level.
Trade Set Up: BUY LIMIT (Entry price 71.89), stop loss set at 71.55 and take profit left open – targeting at least the 72.45 level.
Stop Loss: 44PIPS
Take Profit: 56 (but left open)