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