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.

I Expect An AUD/JPY Rally

The AUD/JPY pair is at a strong support in the zone around 82.30 – 81.90. That can be clearly observed on the H4 and D1 time frames.

At the same time the pair is also clearly forming a trend channel on the H4 time frame (in red) and it has reached the support trend line twice and resistance trend line once. I expect that there will be a rally to the resistance trend line around 83.30-83.50.

I think that in case the pair breaks out above that resistance trend line we could expect the rally to continue toward 84.80 – 85.00.

Should that scenario fail we could expect a depreciation of the pair to test the support at 80.50.