AUD/JPY has dropped perfectly and reached our profit target. We prepare to buy above major support at 81.78 (Fibonacci extension, horizontal swing low support, bullish divergence) for a push up to at least 82.77 resistance (Fibonacci retracement, swing high resistance).
Stochastic (34,5,3) is seeing strong support above 3.6% and also sees the long-term bullish divergence signalling that a bounce is impending.
Correlation analysis: We're expecting overall JPY weakness with bounces expected on AUD/JPY, USD/JPY and EUR/JPY. Hence, this scenario falls very nicely into a correlated move.
Buy above 81.78. Set stop loss at 81.50 and take profit at 82.77.
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