AUD/JPY Reaches Critical Level with Bullish Momentum

Image Link: https://ibb.co/6vBJcyV

Hey fellow traders,

I wanted to share some exciting news regarding AUD/JPY. The currency pair has recently completed a bearish Bat formation at 97.18, indicating a critical level for potential market movement. What's even more impressive is that AUD/JPY has been enjoying a strong upward momentum, reaching its highest level in 196 days.

Currently, we're witnessing nine consecutive positive days in a row, which aligns with the technical analysis rule known as the 'rule of 9.' According to this rule, after a series of nine positive or negative candles, we often see a correction in the opposite direction. So, it's important to keep an eye out for potential shifts in the market.

On the weekly chart, this level also coincides with the potential completion of the BC leg in a large Gartley formation. Although this setup carries a higher level of risk, it also presents excellent opportunities for long-term traders who are seeking substantial rewards.

However, it's crucial to remain cautious and monitor the situation closely. If AUD/JPY surpasses 98.60, the pattern will be invalidated. Additionally, the completion level for the Gartley formation lies at 82.24, which could act as a significant target if the pattern plays out as expected.

For those interested in taking advantage of this setup, there is a bespoke support level at 93.94, where we anticipate buyers to step in. This level serves as an additional factor to consider when making trading decisions.

Remember, trading always involves risks, so ensure you have a well-defined strategy and manage your risk effectively. Keep a close watch on the market developments and make informed decisions based on your trading plan.

Good luck and happy trading!