The market seems to be consolidating since the beginning of the week, at least on majority of the instruments we are following. AUD/JPY is among the pairs that are currently in correction mode, forming a symmetrical triangle on the H4 chart. Intraday/scalping setups already paid based on FX Delta, but the purpose of this article will be to determine the longer term view based on technical analysis.
AUD/JPY D1 (Daily) chart – Down trend line, ABCD pattern, Fibonacci Expansion
Performing a top-bottom analysis, starting from the D1 chart, we find a down trend line from the swing highs at 83.90 – December 2018 and 80.70 respectively in the end of April 2019.
The key resistance level in the zone of 76.15 – 75.40 coincides with the down trend line and the place where the price met both of them. The result was almost immediate rejection and sellers took control pushing the price below the 75.40 level.
free telegram channel
Join our Free Telegram Channel and never miss a trade opportunity again – https://t.me/vladimirribakovtradingchannel
As the pair is in a down trend, we should also follow up for corrective patterns. We find bullish ABCD pattern, using the Fibonacci Expansion tool, measuring the two bullish legs starting from the end of August 2019 at 69.90 for point two at 75.50, which is the swing high of the first leg and point three at the beginning of October 2019 at 71.70.
AUD/JPY H4 (4 hours) chart – Symmetrical Triangle, 3 Key Pivot Point Levels
After the strong bearish run from the beginning of the month, starting at 75.60, the pair found support at the up trend line that we mentioned above. Consolidation started and we are currently looking at a symmetrical triangle pattern. Breakout below this triangle pattern will also mean a breakout below the up trend line (blue line), which would be a pretty good confirmation for bearish pressure and potential sell off.
Applying pivot points to the chart we spot three zones where multiple pivot points (from Daily, Weekly and Monthly charts) are concentrated.
The green rectangle marks the zone in the range of 74.30 down to 74.15. Weekly pivot – resistance 1, daily pivot – resistance 1 and 2 form this zone. In fact we can use this zone as invalidation zone for the bearish trade setup.
Below, right in the middle of the symmetrical triangle we find 4 pivots that form the range in between 73.90 down to 73.75, marked with grey rectangle on the screenshot.
At the very bottom, we have another key support from 73.55 down to 73.35, marked in orange.
Like these analysis?
Join the Traders Academy Club and get access to our complete watch list and trade report.
This is how the report looks like. A table with the hottest market opportunities, screenshot behind every pair and time frame (anything that is in blue inside the table is clickable and leads to a screenshot) + a summary in text format, kind of highlights. And of course Live Trading Room every single day.:
Chief Trader at the Traders Academy Club