YEN has been weak for the last couple of days, and thus AUDJPY has gone north, after making Double Bottom.
In fact, this is one of the textbook reversal patterns – Double Bottom + Higher High. (Bullish divergence is a plus!)
When we see this patter, we should look for Higher Low, and buy!
Here are the possible buy zones.
As usual, we should look for Fib38.2-61.8% area
Special notes …
a) There is a DPP at Fib50%.
b) There is a WPP at Fib61.8%.
The target should be 84.50. (Measure the length of the neck line and extend it)
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo