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
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).
|2hr Chart - Buy AUD/JPY at 80.00.|
Any news, opinions, research, analysis, prices or other information contained on the trading.co.uk website are provided as general Market commentary and do not constitute investment advice. Trading.co.uk is not liable for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from use of or reliance on such information.