This post follows up two previous observations. A high probability reversal setup spotted in AUDJPY on 25 January 2018 and a similar setup spotted in NZDUSD last week 15 March 2018. AUDJPY is confirmed and moving along nicely while NZDUSD is perched at the edge of confirmation.
This is a post-CNY update with a look at CME odds of a March rate hike (83%). Additionally I take a closer look at JP225 and SG30. JP225 is clearly the weaker leg in the correction and their relative performance suggests JP225 has more to lose. For SG30, recall that 399 is a strong level to test.
AUDJPY, SiMSCI and HSI demonstrated very high levels of positive correlation in the past but this correlation ‘fell apart’ since 2017. Is this correlation still valid? If valid, what does AUDJPY’s recent trend portend for traders in these two Asian indices? Is it time to converge? Indices to fall some more?
Out of 7 USDJPY forecasts compiled in the beginning of the year, 6 appear to be wrong. It is 11 months too early to tell but does not bode well. Price takes the path of least resistance – JPY charts suggest this ‘least resistance’ path is down.
Spot 3 out of 5 common elements of a high probability reversal setup in AUDJPY. Understand why they offer a compelling trade action when all five appear and what to expect of the last two.
Examples of line chart analysis on NATGAS and AUDJPY for purely educational purpose (for forex traders). KISS – keep it simple, easy to learn and use.
AUD and NZD pairs show recurring, high probability levels on weekly charts, and have a lot of significance because of duration and number of hits.