AUDJPY Reversal Pattern

ChartSecret

Master Trader
Jun 26, 2009
91
1
62
www.chartsecret.com
AUDJPY has formed a Broadening Megaphone chart pattern - which is a strong reversal pattern that usually leads to a breakout downwards. This pattern consists of two expanding trend lines that suggest that the trend is not symmetrical (as in Channel, whose trend lines are parallel).
Pattern is also confirmed by strong Resistance at 80 which is close.

Trading:
Short trades will be issued on the breakout of the megaphone, and on pullback to the Support trendline.

Analysis Source:
http://www.chartsecret.com/content/audjpy-reversal-chart-pattern
 

Attachments

Pinalli

Master Trader
Jan 31, 2009
334
4
54
Something strange has been happening in the Forex market that is rarely seen; the AUD and JPY have both been rallying at the same time.

According to historical data, this trend is unsustainable - these currencies normally lie at the opposite end of the risk appetite spectrum.

The JPY is gaining on comments from the incoming administration that suggest a lack of concern over the strong JPY, while the AUD seems to be the most popular currency to buy in the new USD carry trade.

AUD is winning the race against the JPY over the last couple of days, and if risk appetite stays robust while bond yield rise a bit more, then we could be in for a retest of that 80.00 area again. If equities do reverse and start to fall however, look out below....

4060733.jpg
 

AutoTrader

Active Trader
Sep 17, 2009
13
0
37
Whats wrong with AUD\JPY ralling at the same time? What you are saying is inaccurate. Look at the daily-chart: After a big double bottom AUD\JPY has been rising continuously since the beginning of 2009.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,657
944
144
Odessa
www.earnforex.com
Whats wrong with AUD\JPY ralling at the same time? What you are saying is inaccurate. Look at the daily-chart: After a big double bottom AUD\JPY has been rising continuously since the beginning of 2009.
Read carefully, Pinalli is saying that both AUD and JPY are rallying at the same time, not AUD/JPY currency pair (which would mean rising AUD and falling JPY).
 

AutoTrader

Active Trader
Sep 17, 2009
13
0
37
Read carefully, Pinalli is saying that both AUD and JPY are rallying at the same time, not AUD/JPY currency pair (which would mean rising AUD and falling JPY).

I understood what he meant, and it is incorrect.
If AUD and JPY are rallying at the same time the AUD\JPY should be flat, and it isn't. On the contrary, it is rising very strongly. Weekly chart shows the reason for the rising of AUD and the falling of JPY.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,657
944
144
Odessa
www.earnforex.com
I understood what he meant, and it is incorrect.
If AUD and JPY are rallying at the same time the AUD\JPY should be flat, and it isn't. On the contrary, it is rising very strongly. Weekly chart shows the reason for the rising of AUD and the falling of JPY.
First, there is no reason for AUD/JPY to be flat when both AUD and JPY are rallying. The AUD, for example, can grow faster than JPY and then AUD/JPY would be rallying too, even if JPY is growing against other currencies.

Second, AUD/JPY is in a sideways jigsaw since mid-August. And both AUD and JPY are growing against the USD and GBP for at least a month or so.