WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: AUD/JPY Retreats near four-month high

Posted by Edward Moya on May 15, 2015 5:46:00 AM

WWM AUDJPY MAY 15 2015

AUD/JPY tentatively retreated from key resistance around the 97.28 price area on Thursday.  The short-term retreat occurred around 20 pips before forming a bearish Gartley pattern.  The AUD/JPY daily chart shows that the rebound and partial recovery from the February 3rd low of 89.36 is under pressure as price attempts to drop below the key 50.0 Fibonacci retracement of the major slide that occurred last winter. 

While I expect the Australian dollar to become an attractive currency in the second half of the year as China strengthens, the next month could see this currency pair trade in a more consolidating way.    Major support and a possible lower boundary may come from both the 50- and 100- day SMAs at around the 93.00 zone.  Further upside may initially be capped by the 98 resistance level. 

In the event the recent bullish channel is respected and the 98 area does not hold, bullish momentum may target the psychological 100 handle. 

The trade: Buy AUD/JPY at 93.70, with a stop loss at 92.70 and take profit at 97.70.  The risk/reward ratio is 1:4

Edward J. Moya

Senior Market Strategist

WorldWideMarkets Online Trading

Topics: AUDUSD, china, aud/yen, AUDJPY, Australian Economy

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!