In the chart below there are clear visible bullish market patterns that are calling for another move higher for the AUDJPY pair. Blue bullish market pattern already triggered BUYS at the XA 0.886% Fib. retracement level. Also a bullish trend continuation divergence pattern (pink) has formed at the same XA 0.886% level which is adding more confirmation that the pair wants to push higher. Price has already bounced off this level and traders should now wait for the confirmation break higher above 80.20. A break above 80.20 will signal more buyers to get in the market and could possibly push AUDJPY higher. On the break above the 80.20 buy level, stops should be placed below the point D of the blue bullish pattern looking for a move higher to hit targets above the 1:1 RR minimum target. Only a move below 79.75 will invalidate the blue bullish pattern and could trigger more sellers to push the pair lower. Traders should be patient and wait for the confirmation break higher to enter LONGS. Any move below the point D, before breaking above the BUY breakout level, will also invalidate the blue bullish pattern.
AUDJPY 1 Hour Chart January 22 2021
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
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