AUD/JPY is the best-performer today as yesterday’s worries unwind.
The 60-pip rally in the pair is virtually a mirror image of yesterday’s decline. The turnaround began at the 61.8% retracement of the May-July rally but after the 100-dma was breached.
AUDJPY daily
This trade mirrors the stock market today and it’s encouraging for the bulls but I still think it’s too early to get excited about gains. That would change if we close above yesterday’s high of 95.28 and mark a bullish engulfing candle on the chart.
The intraday chart shows an inverted head & shoulders pattern as well and I continue to believe that the Ukraine plane crash opens a path for peace if Russia wants it.
