AUDJPY D1 Our expectations:
The breakout of the consolidation from the beginning of the year towards north creates positive expectations for the pair. The price is approaching a test at about 79.80, with many analysts recommending looking for long positions. However, the price has bounced back down from the 200SMA, which gives us a good opportunity to wait for a better positioning price.
If we look at the graph a little bit back the previous breakthrough of such consolidation was followed by a 50SMA test, which gives us a good chance to wait for a test at 78.91 where we can look for long positions.
SL: 77.05 – Sufficiently exported outside the last consolidation.
DeM (14) rotates above 0.7 in an overbought market, which, in line with the 200SMA bounce back, creates a good chance of waiting for a correction before we position.
Alternative Scenario: Breaking the price below the lower limit of consolidation will be negative for the pair.