• FxWirePro: AUD/JPY shows breakout at 'symmetric triangle' base, bias lower, stay short

    Source: FxWire Pro - Technicals / 09 Feb 2018 00:58:05   Eastern Standard Time

    • AUD/JPY has broken support at 'Triangle Base' at 85.50, scope for further downside seen.
    • Price action has retraced from fresh 3-month lows at 84.38, has held minor support at Nov 28 lows (84.39).
    • We see a spinning top formation at lows below 'Symmetric triangle' which calls for caution.
    • However, technical studies on daily and weekly charts support downside. Price action has broken below major moving averages and daily cloud.
    • Breach at 'Triangle Base' raises scope for test of 83.72 (June 22 low). Further weakness only on break below.
    • Bearish invalidation on retrace above 200-DMA at 86.52.

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-JPY-struggles-at-Triangle-Base-at-8550-further-downside-only-on-break-below-1140005) has almost hit all targets.

    Recommendation: Book partial profits, trail stop loss to 85.50, hold for 84/ 83.75.

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