My decision to stand aside on Friday saved me from a losing trade as this pair was technically a mess. The pair failed to continue its bearish momentum, topped at 130.00 and closed at 129.69. I think I will keep stay away from this pair as I can not see clear direction. Aggressive traders may place a long position around 129.00 support area with tight stop loss below it targeting 130.70.
The GBPJPY had a volatile movement on Friday. Generally price had a bullish momentum after the false breakdown as you can see on h4 chart below. I do not like a high volatile market since for me it indicates a relative equal bullish and bearish power which give me only 50-50 probability. However technically the bullish scenario should remains intact and I prefer a bullish scenario with 146.80 as the nearest target. Valid break above that area should trigger further bullish momentum and take us into new bullish phase targeting 148.50 area. On the downside 144.85 and the trendline support area should be a key support level at this phase. Consistent movement below the trendline should be seen as bullish failure and could trigger further bearish pressure at least re-testing 143.75 area.
The AUDUSD attempted to push lower on Friday, bottomed at 0.8809 but closed higher at 0.8897. I think this was a normal upside pullback. On h4 chart below we can see that price is able to stay below key level 0.8915 indicating potential bearish continuation at least targeting 0.8750 area. Break above 0.8915 area should lead us into no trading zone but overall the bearish scenario should remains in control and long position is not recommended at this phase.
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