Recently we looked over a strong bullish counter trend setup in the AUDJPY market. A strong, large Rejection Candle formed off a major weekly support level, which has seen good bullish follow through during last week’s trading.
So far this week however, the market has taken pause and price has consolidated into a double inside day pattern. Double Inside Day’s are a really good primer for powerful breakouts. Generally the breakouts will occur with recent momentum, so in this case we could be looking at a break to the high side.
The USDJPY has also closed outside of it’s consolidation pattern, and looks like it’s on the up move also.
If this consolidation pattern is broken, then we could definitely see this next weekly level tested as resistance, and possibly even see it breached if the market has enough bullish strength.
Mohamed Ismail
Hello Dale,
Nice setup, is the inside day setup on the GBP JPY daily chart is valid too
Replying to: Mohamed Ismail
Dale WoodsAuthor
It didn’t look as good at the time because of such a negative close in the body. But surprisingly the highs were eventually broken and an upside breakout did occur.