AUD/JPY: Hammer After Pull-Back, Indicating Possible Bullish Resumption
Forex4you | May 14, 2015 09:58AM ET
The AUD/JPY pair has pulled-back after bullishly breaking out of a right-angled triangle.
The pull-back is expected to be temporary. Price has formed a bullish hammer candlestick on the 10-MA on strengthening momentum. This is a signal the trend will probably go higher.
A break above the hammer highs at 96.81 would probably provide confirmation of more upside, to a target at 97.51, calculated using the length of the hammer extrapolated higher.
This trade is supported by a fundamental backdrop of an improved outlook for commodities which are bullish AUD but bearish JPY.
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