The AUDJPY broke above the 100 day MA last Thursday, tested the 200 day MA at the 81.80 level (high was 81.76) on Friday, and over the last two days has been testing the 100 day MA again at the 80.75 level (80.71 is the low). At the low today, the price also tested the 100 and 200 hour MA and 50% retracement of the move up from September 5th (see hourly chart below) . I know the horse left the barn in the London morning session, but that consolidation of the 100 day MA, the 100 and 200 hour MA and 50% retracement was a great low risk trading opportunity. Store that idea for another day when the opportunity arises.
Now what? Looking at the 5 minute chart below, the price has risen to a topside trend line line at the 81.24 area and sits between that line and the 38.2% retracement. Look for support now at the 81.04 07 area. The 38.2% retracement is at this area as at the area as is the last highs in the pair. A break of the trend line above opens the door for further upside momentum.
