AUD: JPY – Swing trader’s triangle

Aussie Yen looks strategically placed in what could be an interesting session for currencies leading into Dr. Bernanke’s testimony before Congress

 4 Hour Chart

AUD:JPY CFD - 4 Hour

AUD:JPY CFD – 4 Hour

The strategies on the chart assume a bias to selling on a break to the downside of this triangle given the overbought nature of the longer term trend.

One possibility would be to sell if price rallies a bit and again fails at the triangle resistance.  This looks to position for an early entry on a break to the downside.

The other possibility is to sell if price drops below the triangle support.

Many analysts adopt a strategy of leaving triangle set ups if price works it’s way too far into the corner before breaking out. This one has a fair way to go before reaching that stage.

About Ric Spooner

Over 30 years market experience - professional trader, broker, director
This entry was posted in Forex, Market, Trading and tagged , , , . Bookmark the permalink.

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