Short at 96.85 (on demand after better than expected trade balance)
SL at 97.40
TP at 96.00
Risk-reward ~1.5
Risk aversion has prompted JPY appreciation across the board in the first week of this year.
For AUDJPY, it meant a decisive break down of the daily cloud and pair is currently,
1. Trading below cloud
2. Tenkan has cross over Kijun-sen
3. Trading below both Tenkan and Kijun-sen (all bearish)
Channel seen in chart is neutral.
However, strong support at 96.00 should see demand - being strong previous resistance, and coincidence of 0.618 of Q4 2014 HL Fib + Mid level of full year 2014 high-low. Hence would exit short there.
Break of 96.00 and consequently 200 DMA may open path to channel bottom (~93.50) and even 0.236 of 2014 HL (~91.00) - which is also bottom of monthly bullish channel (2008/2009 bottom to 2013 top)
SL at 97.40
TP at 96.00
Risk-reward ~1.5
Risk aversion has prompted JPY appreciation across the board in the first week of this year.
For AUDJPY, it meant a decisive break down of the daily cloud and pair is currently,
1. Trading below cloud
2. Tenkan has cross over Kijun-sen
3. Trading below both Tenkan and Kijun-sen (all bearish)
Channel seen in chart is neutral.
However, strong support at 96.00 should see demand - being strong previous resistance, and coincidence of 0.618 of Q4 2014 HL Fib + Mid level of full year 2014 high-low. Hence would exit short there.
Break of 96.00 and consequently 200 DMA may open path to channel bottom (~93.50) and even 0.236 of 2014 HL (~91.00) - which is also bottom of monthly bullish channel (2008/2009 bottom to 2013 top)