Talking Points- AUD/JPY Opens in a 34 Pip Range
- Range Resistance Sits at 94.07
- Range Reversals Triggered Under 93.56
(Created using FXCM’s Marketscope 2.0 charts)
The AUD/JPY currency pair has opened Tuesday’s trading moving inside of a defined 34 pip range. Price has already traversed the range four times, and is now sitting at range resistance. Current resistance can be seen in the graph above at the R3 pivot at a price of 94.07. In the event that price moves off of resistance, reversal traders can begin targeting lines of support starting with the S3 pivot at 93.73. A move to support would complete another extension of the range, at which point traders would watch for new opportunities to buy the pair if price remains supported.
A breakout would signal an end to current range bound market conditions for the AUD/JPY. A price break above the R4 pivot at 94.24 would signal a new bullish momentum with the creation of a higher high. Conversely, a price drop below the S4 pivot at 93.56 would suggest further weakness for the pair in the direction of its current daily trend. In either breakout scenario, traders should look to conclude any existing range bound opportunities while looking to trade with the markets new chosen direction.
Suggested Reading: Trading Intraday Market Reversals
Yesterdays Update
Yesterday’s reversal article focused on the USD/CHF opening the morning inside of a 38pip range. After a brief retracement, the US Dollar weakened sending the pair to the S4 support pivot. To learn more about Friday’s action, check out the FX Reversal article linked below.
FX Reversals: USDCHF Price Reversal Update
---Written by Walker England, Trading Instructor