The Australian Dollar Japanese Yen.

Good morning Dynamic Traders,

Welcome to another trading week and I hope you all have great success with your analysis and trades.

Today I am looking at the AUDJPY on the four hour timeframe which is showing a possibility of various scenarios and so I will trade accordingly.

Whilst doing your own analysis you will see that the daily timeframe has recently been around the V.I. and has the MACD signal lines heading south.

If you then go to the four hour chart below, one possible pattern is the H&S as shown which at present is showing a break of the neckline although this is not complete at time of writing.

However whilst this is happening there is short term convergence which could imply a possible bounce and when tied up with price action being at the figure and fibonacci cluster zone and former resistance I am waiting to see what prevails here before entering the trade, as this could pullback to do a retest.

This pair is one to await more direction unless you wish to be aggressive but for me I shall await more confluences to accrue.

As always please do your own analysis before taking any trades.

Charts courtesy of TradeStation.

Good luck.

Clayton Farnworth.