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!

2016-01-22_14-53-37-AJ1-1-1024x877

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%.

2016-01-22_15-27-43-AJ2-1024x840

The target should be 84.50.  (Measure the length of the neck line and extend it)

2016-01-22_15-41-55-AJ5

 

Hope this setup helps you build your own.

 

 

YJ Baik – Forex.Today @ Tokyo

 

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