Forex Daily Trading AUD JPY Technical Analysis

Administrative, you can see that we clearly have a significant support level at the 78 handle in the AUD/JPY pair. Because of this, it appears that we have had several bounces from this level, and that’s what I’m basing this trade upon. With Nonfarm Payroll coming out in a little over 24 hours, I’m basically assuming that the market will be fairly straightforward.

As a switch down to the one-hour chart, you can see that we formed a hammer 2 hours ago, and have broken cleanly above it. I’ve entered the market at 78.594, and I’m aiming for the 78.99, with the stop loss being a fresh new low in the form of the 78.15 level. Also, looking at the 4 hour chart it appears that we are trying to form a hammer which of course is a bullish sign. If we were able to break down below the 78 handle, that would actually have me reentering the market to the downside as it would be a significant breakdown.

A couple hours into the trade we have formed a hammer on the 4-hour chart from the candle that we traded off of, and were forming something akin to a hammer on the next 4-hour candle. Because of this, things look good and therefore I’m willing to drag my stop loss to higher levels, just below the hammer that got me interested in the market in the first place. While this doesn’t guarantee a profitable trade, it takes off some of the risk. With fact, I moved my stop loss to the 78.25 level. Keep in mind that I may have to close out this trade before the Nonfarm Payroll number as there’s no need to have the volatility take you out of the market when you were initially making money.

Going forward, I woke up and we actually hit the target while I was asleep. Because of this, there’s no need to worry about the announcement, as we are out of the market. Obviously, we should go higher but at this point in time we have our profit and I’m happy. This is based upon a significant support level, and essentially I just have to assume that the market was going to repeat itself, until of course it didn’t.