A bullish pattern is currently forming on the AUD/JPY 2hr
Chart. There are multiple reasons that we are looking for support at 80.00. First, the pattern would fulfill the criteria needed
for a bullish Gartley
pattern due to support at 78.6% of 01, 161.8% of AB, and 1A=BC. The trade idea would also enter at a round number (80), which could create a little extra support. The
trade is invalidated
if
the pair rallies to 81.82 before
reaching the entry.
The pattern suggests buying the AUD/JPY if it drops to 80.. (Point D).
In summary, point D is located at the convergence of the following points:
78.6% Fibonacci retracement of 01. 161.8% Fibonacci extension of AB.ABC pattern.
To recap, the pattern suggests buying the AUD/JPY at 80.00 with our stop
placed at 79.62. Our initial profit target is 80.58 (38.2% of BC).
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| 2hr Chart - Buy AUD/JPY at 80.00. |
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