Friday, May 11, 2018

The Expectation For An AUD/JPY Rally To 84.80 - 85.00 Remains Valid

The AUD/JPY movement did not develop exactly as I expected >>>

Instead of beginning a rally toward the resistance trend line of the channel the pair broke out below it as it depreciated and reached its limit.

Right after that the upward movement was renewed. On the H4 time frame the pair appears to be attempting to form head and shoulders figure which would be a signal for a reversal, but so far that is not confirmed.

My expectation for a rally to 84.80 - 85.00 still remains valid.

Today is Friday and there are mere hours left until the end of the trading week. On the W1 time frame a bar is being formed that has not closed yet, but soon it will be clear how it will close. For now there’s a chance for it to close as a pin bar and if that happens that would be the first stable signal for a renewal of the rally to 84.80 - 85.00.