AUD/JPY – Daily outlook 04 November
Earlier in the week our analysis suggested we could see the pair rejecting the 83.00 area as the market was showing strong resistance. The pair did infact reject this area and fell towards our initial target of 80.00.
We can see from the daily charts that the bullish momentum seen since the start of October could be set to continue back up to at least the 83 area.
The market has just completed a Hikkake pattern with yesterdays candle rejecting the strong S&R level of 80.
Zooming into the chart we can see the Hikkake in more detail. The Hikkake is strengthened due to it being formed at a strong S&R level and being inline with the current short term trend.
We will be looking to buy into this market with an initial target at the 83.00 area. Should we see a break and close above this area we could potentially see the market continuing to the 85 area. A suggested way to enter this trade could be to place a limit order at the 50% retracement of yesterdays (Thursdays) pin bar, with a stop just below yesterday’s lows.
