The AUD/JPY has been on a tear this week and a 4hr chart triangle breakout has so far yielded up to 170 pips. However, price action is now testing a major daily and weekly chart based triangle which could be worth up to 2,000 pips on any breakout so these trend lines are worth watching as well!
AUD/JPY 4hr: showing the 4hr chart’s triangle breakout that triggered on Monday but note the current trend line being tested. This is derived from the daily / weekly charts and is another triangle to monitor for any make or break activity, however, at the moment it likes like a bullish breakout is being attempted.
AUD/JPY 15 min: this is the 15 min chart showing back to Monday and how this earlier 4hr chart triangle trend line breakout evolved with a new TC LONG signal. These are the optimal type of TC signal that I urge TC Trial traders to watch out for. Note how price reached to the key 85 S/R level before slowing and gave an 8R move.
AUD/JPY 15 min: there were two new TC signals yesterday as can be seen with the vertical red lines. One was a SHORT which failed but this signal should have been viewed with some caution as price action had broken the key 85 and a test of this level should have been expected. The test held and then another TC signal evolved which is still open and running and currently up to 4R:
AUD/JPY daily: note the uptick with the ADX and the +DMI here; this is bullish.
AUD/JPY weekly: watch these trend lines for any new breakout as the triangle is worth around 2,000 pips according to technical breakout theory; this target being derived from the height of the triangle off the shorter/lower trend line upwards to where it intersects with the upper trend line (approx 72.5 to approx 92.5). Watch these key levels with any bullish breakout move:
- the 50% fib near 87.5,
- the 89 S/R level,
- the 90 whole number level and
- the 61.8% fib near 91.
AUD/JPY monthly: note how significant the 89 and 90 levels are:
Summary: watch for any weekly chart triangle breakout on the AUD/JPY as this could be worth a move of up to 2,000 pips. The AUD/JPY is highly + correlated with the S&P500 too so keep an eye on this index as well!