Looking for trends to jump into before the trading week ends?
If you are, you’re in luck because AUD/JPY just settled at a possible inflection point!
The pair turned lower from the 98.50 levels earlier this week and received enough bearish momentum to drop all the way down to the 97.40 area.
Hey, that’s around where the R1 (97.26) Pivot Point and previous resistance points are in the 4-hour time frame!
Coincidentally, AUD/JPY’s current levels are also not too far from a trend line support that’s been around since late October.
Can AUD/JPY extend its uptrend?
AUD/JPY 4-Hour Forex Chart by TradingView
Keep in mind that fundamental drivers will always factor in chart patterns in the higher time frames.
If you believe that the fundamentals point to further gains for AUD, then you can probably start scaling in at current levels and consider adding to your positions if AUD/JPY retests its trend line support or if Stochastic turns higher from its oversold area.
More conservative traders can also jump in after AUD/JPY has found support from the R1 Pivot Point and has shown a couple of bullish candlesticks to hint of a momentum.
The 98.50 previous highs is a good place for initial targets but you can also aim for new November highs if you’re targeting higher risk ratios.
But what if your research points to AUD/JPY reversing its uptrend in the next couple of weeks?
If you’d rather short AUD against JPY, then you can make trading plans around a possible breakout below the trend line in the chart.
The S1 (95.70) Pivot Point line could draw in enough support for an initial target for the bears but AUD/JPY can also head for the 94.25 October support zone if there’s enough selling pressure.
Good luck and good trading this one!