~ Week Of July 18th 2016 ~
Published by Jay - July 17th 2016
The last week has seen the Australian Dollar (AUD) vs. Japanese Yen (JPY) recover to the upside after a more than 400 point move down during the Brexit chaos that hit this pair hard on the 24th of June. By market close on Friday afternoon in the U.S. we can see on the chart that price has reversed at a strong resistance level previously respected on a number of occasions. Will we see a move down in the new trading week ahead?
We need to be aware of the fact that there is a lot of traffic to the left of the current price that may hinder a short position in the market. If price can break past and close below the minor support level, then we could possibly see another downward move.
It's always important to consider the whole price action story that is laid out on the chart and not rely solely on a single factor, such as a resistance level. The more factors that are stacked on our side prior to entering a trade, the more likely it will play out in our favour.