The AUDJPY is showing patterns that suggest the pair will continue with their slow meandering towards higher levels.  There are some nice resistance and support points which can offer us strong trading opportunities which we are going to examine below.

AUDJPYThe pair (like all the JPY crosses) was under the Kumo since late summer 08′ but recently made a clean break above it and has since then been trending smoothly, albeit a Tortuga like pace but has yet to have a daily close below the 20EMA since mid-February.  This gives us some good reference points for longs with low risk/high reward opportunities.  What further supports these moves is how the oscillators are behaving.  Taking a look at the chart below, we can see how CCI and Momentum are in consolidation phases.  When they do that, they usually signal - continuation of whatever the pair is already doing.  Since its trending mildly upward, as long as those oscillators hold those levels, they should continue to trend mildly upward.  Thus, we feel a 20EMA touchdown offers a great play for getting in along with the Tenkan line coming in at a similar level.  Also to note is the fibonacci drawn from the most recent swing high in August of 08′ to the lows of 08′ just below the 55handle.  The pair has since stopped at the 50fib and the 38.2 also comes in right along with the 20ema and Tenkan Line offering great support to the downside.  If the oscillators break then watch for the pair to break those lines but if they hold, expect them to continue.

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