Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

AUD/JPY - Price Bottom and Bullish Breakout Scenario

The AUD/JPY has been bearish since late 2014, falling from heights around 102.80 down to about 82.00 in August this year. 

AUD/JPY Daily Chart 11/17

(click to enlarge)

The latest wave down from around 97.00 down to 82.00 from May to August has a falling trendline. Price action in October respected this trendline, but bears failed to push price down so far. Instead price held mostly above 86 and is now breaking that falling trendline. It is still not a clear break, but a push above 88.00 would make it clearer. It would also suggest respect for a double bottom, or whatever structure you like to categorize the price action from August through September. 

From the daily chart, it seems like the market is getting ready for a bull run in the medium-term (weeks to months). In the short-term 90.00 appears to be a viable target. In the medium-term, common pivots around 92.00 and 96.00 area in sight.