My thoughts on AUDJPY were short overall, but taking a look at current price action on the 1H chart also presents a short term buy....
Price today touched the .618 retrace of that bearish move, which is also the third touch of upper trend line. Immediately after the touch, price created a nice bearish engulfing candle, enticing sellers to jump in. But what happens next, is that when price touches the lower trend line (also third touch) it not only pulls back, it closes as a low test, with volume the highest it's been for over a year.
Now... more volume means big money is coming into the market (i.e. banks). The fact that volume was so high and the very next candle was a bullish engulfing (after higher highs and higher lows), if price can break out of this bullish pennant formation, we could see a huge rally to the next swing high near 87.500...about 145 pips.
As long as price stays consolidating within this current pennant formation, anything can happen. waiting to see which direction price breaks out before I get involved.
#BigBanks
Price today touched the .618 retrace of that bearish move, which is also the third touch of upper trend line. Immediately after the touch, price created a nice bearish engulfing candle, enticing sellers to jump in. But what happens next, is that when price touches the lower trend line (also third touch) it not only pulls back, it closes as a low test, with volume the highest it's been for over a year.
Now... more volume means big money is coming into the market (i.e. banks). The fact that volume was so high and the very next candle was a bullish engulfing (after higher highs and higher lows), if price can break out of this bullish pennant formation, we could see a huge rally to the next swing high near 87.500...about 145 pips.
As long as price stays consolidating within this current pennant formation, anything can happen. waiting to see which direction price breaks out before I get involved.
#BigBanks