Trade of the week – AUDJPY long-term descending triangle breakout
Our trade of the week is AUDJPY.
This would not be an easy trade as we are facing increased volatility that is affecting all assets. AUDJPY has been moving lower inside long-term Andrews Pitchfork channel and is now breaking below long-term falling descending triangle 73 level. Pitchfork channel quadrant line is on a test now 66.70 level a sit can be seen on a monthly chart. It is moving below the Gann breakout line 67.50 level as well.
On a daily chart, we can see that the pair is breaking below the descending triangle wedge. Based on this you can place a short trade entry with a stop loss above the 70.60 level and targeting 60 level at least. The entry should be on a pullback to 70. In case we have a daily close above 72 this will invalidate the downside and will be a long trade opportunity, however, so if you will be stopped change trade direction. Our trading system is indicating a potential 350 pips of profit.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
