The last time we featured AUD/JPY and the broader Aussie Dollar, price was trending downward within a textbook descending channel.
We’ve experienced some rather large fundamental changes on both the AUD and JPY side of the currency pair since then and as we know, the Yen has been monumentally hammered. Happy days if you’re Kuroda!
This change is highlighted no better than on the AUD/JPY daily chart:
Zooming into the hourly and we have a clearly defined support/resistance zone that has been respected on both sides, around which we can manage our risk:
After defining our in play level on the higher time frame, it is then on the intraday charts where I like to look to take trades. It is on the hourly where I will be looking for a failure out of this zone, and take a short on any pullback into short term resistance.
Keep an eye on the @VantageFX Twitter account and don’t be afraid to share your own chart setups with the trading community.
Do you see opportunity trading AUD/JPY? Open a LIVE forex account with Vantage FX.
Dane Williams – @VantageFX
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