Thursday, January 19, 2012
Possible breakout in aud/jpy may cause it to continue upward trend
If you followed my recent posts you remember that I talked about possibility of gbp/usd and gbp/jpy pairs reversal near their important support levels. That is exactly what has been happening these couple of days. Support held and the pairs are going up. I am not sure whether it will continue for a long time, but I expect a pretty strong resistance at 123.00 level for gbp/jpy and 1.5700 level for gbp/usd.
On the other hand I look at aud/jpy daily chart and see that the security has been ranging between 80.50 and 77.00 levels for some time and forming upward pressure makes me think that there will be a breakout upwards and the pair will resume its’ upward trend. It is at resistance now and in case of breakout the next resistance level would be 82.00-83.00 area.
Since all important data from Australia came yesterday I do not see anything from fundamental point to stop the rise of the pair. So, buying point of the pair can be anything above its’ present level. Of course, one has to remember that the pair has already travelled a nice distance from its’ bottom of 72.04 made on the 4th of October 2011. Do not make your positions big and when (and if) the pair breaks up move your stops upwards when the security goes up.
Hope the trend analysis was useful.
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