AUD/JPY TECHNINICAL STRATEGY: PENDING SHORT
Trying to go quick AUD/JPY after commerce struggle talks conclude
AUD/JPY trying to possibly re-test December resistance line?
Ready for re-test with affirmation of downtrend to go quick
AUD/JPY has been on a downtrend for over a month and has been persistently buying and selling under or inside the vary of the December resistance. Ready for the pair to re-test the value vary and make sure the downtrend earlier than contemplating getting into a brief place is likely to be a prudent strategy to guard towards potential counter-trend swings.
This definitely is a chance, contemplating the upcoming commerce talks between Beijing and Washington which can be set to happen on Monday, January 7. If the negotiations go properly and progress on the commerce struggle entrance is made, risk-on sentiment will possible push the pair up, doubtlessly reaching and/or closing above resistance.
AUD/JPY – Day by day Chart
If the pair break above the resistance, the subsequent doable value impediment shall be between the 78.691-79.055 vary. Conversely, if the end result sours market sentiment, the pair will possible decline and proceed alongside the downward development.
If the pair re-test and shut under the resistance, that validation will affirm the power of the pair’s downward momentum. This may in flip enable for a possibility to go quick with presumably comparatively much less threat of a trend-reversal within the near-term.
AUD/JPY TRADING RESOURCES
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— Written by Dimitri Zabelin, Jr Forex Analyst for DailyFX.com
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