Downtrend resistance that has thwarted AUD/JPY bulls since November is under attack on Tuesday following the completion of a three-candle morning star pattern. The bullish signal increases the probability of a retest of the equally formidable 50-day moving average, especially with momentum indicators like RSI (14) and MACD skewing higher.
A decisive break of the downtrend creates a setup where longs could be established above with a stop beneath for protection. The 50-day moving average is the key hurdle for bulls to overcome, with a break of that opening the path for a run towards 96.00 or even the February high of 97.33. Should the move fail at the 50DMA, the trade could be nixed or even reversed.
If the price fails to break the downtrend, the bullish setup would be invalidated.
Good luck!
DS
A decisive break of the downtrend creates a setup where longs could be established above with a stop beneath for protection. The 50-day moving average is the key hurdle for bulls to overcome, with a break of that opening the path for a run towards 96.00 or even the February high of 97.33. Should the move fail at the 50DMA, the trade could be nixed or even reversed.
If the price fails to break the downtrend, the bullish setup would be invalidated.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.