AUD/JPY: Rallying Over 90 PIPs
What a start to AUD/JPY with a huge 90+ rally on this beautiful Friday.
The monthly picture on this pair has been pretty stagnant for the last 3 months. But we could finally be seeing some clear movement in line with January's hammer candlestick. Could we be in store for some bullish momentum? By month end we will be in a better position to make that assertion if we can get a bullish engulfing closure above our monthly moving averages.
Looking at price action from a weekly perspective, we can see our current bullish breakout is could be heading for the third touch of a longer-term trendline. On encountering this trendline not only would we need to see a trendline breakout, but we would also need to see a break of structure to form new highs beyond 83.890 to affirm a mid to long term bullish outlook on this pair.
Most clearly on the daily and H4, we have broken out of a range we have been trapped in since mid-January. After maintaining above our moving averages since the first day of April and creeping towards the resistance of the range; we have rocketed through moving 92 pips so far. This leaves us in good stead for next week. We will be looking for a pullback to the edge of the plotted range before ascending higher. This will increase our risk-reward potential as we look towards the 81.300 region for a third trendline test.