Good day traders! AUD/JPY is approaching a strong area of resistance in the form of a long-term center median line.
The zigzagging nature of price structure, from last year’s August low, could be a corrective phase within a larger downtrend. Price has not yet tested the long-term center median line and might still be drawn towards it.
It will be too early to say whether AUD/JPY is correcting higher or if this upwards move is the start of a larger push higher, but if price makes it into the 76.75 – 78.00 price zone, then we could be presented with an opportunity to go short.
If price makes it into my price zone and presents a reversal pattern on a daily chart, then I would start looking for an entry and set my targets accordingly.
More updates to follow.
Until next time, happy and safe trading.