Last time when we featured AUD/JPY, price was going downward in a textbook descending channel condition.
We saw few rather large big changes in both the AUD and JPY since then and as we now know, the Yen has been monumentally hammered. Happy days if you’re Kuroda!
This change is highlighted no better than on the AUD/JPY daily chart:
Zooming into the hourly and we have a clearly defined support/resistance zone that has been respected on both sides, around which we can manage our risk:
After defining our in play level on the higher time frame, it is then on the intraday charts where I like to look to take trades. It is on the hourly where I will be looking for a failure out of this zone, and take a short on any pullback into short term resistance.
This is a guest post originally appeared on Vantage FX. Reposted with permission.