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Watch AUDJPY for a continuation of this pattern and its implications

AUDJPY perched on support

AUDJPY is a potential downside continuation pattern currently doing consolidation. At the moment, it is potentially already at support from last year’s bottom. A new 52-week low printed first quarter this year suggests further lows.

AUDJPY weekly chart from 2016 to May 2018 (chart A)

AUDJPY weekly chart from 2016 to May 2018; continuation pattern

This second chart shows horizontal lines based on previous tops and bottoms (week close). There are tight clusters which make very good support/resistance zones while empty spaces in between should give the pair plenty of room to move. In other words if the pair can overcome the 82 support, next support will come between 79-80.

AUDJPY weekly chart from 2016 to May 2018 (chart B)

AUDJPY weekly chart from 2016 to May 2018; confluence of past levels

 

AUDJPY and Asian indices highly correlated; 3 previous charts

Convergence could be bad news. AUDJPY moving lower is good news for traders but could be bad for Asian stock investors given the pair’s high level of correlation with Asian indices.

JP225 - SG30 - AUDJPY overlay captured on 20 Feb 2018

JP225 – SG30 – AUDJPY overlay captured on 20 Feb 2018

SiMSCI to AUDJPY divergence in weekly chart 2008 to present

SG30 – AUDJPY overlay published on 06 February 2018

HSI - AUDJPY divergence in weekly chart 2008 - present

HSI – AUDJPY overlay published on 06 February 2016

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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