In our last report about the AUD/JPY currency pair on April 10 we saw the pair trading inside the downside price channel and we recommended selling it, keeping the profits at 82.35 as a first target. The pair declined to achieve our target and we made more than +90 pips as a result. Today we would conduct a new analysis overview to predict yet another good opportunity.
The pair broke the old channel up and rose to trade now around 84.35 after the Australian bank held the cash rate at 1.5%. The pair is trading inside an ascending price channel but today we won't buy it. Instead, we would wait for the breaking down to sell because the pair is making a downward correction wave from the large wave which started after Brexit and lasted till February 15. The pair sloped down a little to the 38.2% correction wave and went back up to trade inside the channel presently. Technically the price channel is considered a continual pattern and it is expected that the price will break the channel down to reach 50% Fibonacci.
The Next Few Days
After this analysis, we have to wait for the price channel breaking down to sell the pair maybe around 83.60, keeping our first target at the upside trend line at 82.00 and the second one at 80.40.
We have to be careful in the upcoming days regarding hot news like the trade balance and the RBA Monetary policy statement. Additionally, Japan has a two-day bank holiday this week.
