AUDJPY Analysis: The US and China signed the phase one trade deal

January 20, 2020

By IFCMarkets

The US and China signed the phase one trade deal

The AUDJPY is in a rising channel above the 200-day moving average line. Some indicators have formed buy signals. The bullish momentum may continue in case AUDJPY exceeds the last fractal high and the upper Bollinger band at 76.9. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low, the lower Bollinger band and the Parabolic signal at 73.7. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (73.7) without reaching the order (76.9), we recommend closing the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

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