A lot of the JPY pairs have formed bullish Pin Bars. The problem with most of these Pin Bar’s is they have not formed at a strong pull-back area. There has only been a retracement of one candle on most of these pairs which does not equal a swing low.
Because of this lack of pull-back, price will be trading straight back into the swing high or the recent resistance if it breaks higher. Price could move higher from these bullish Pin Bars, but it would then have to break through the over head resistance if it is to make a sustained move higher.
If price fails to move higher we could see the start of a prolonged move lower.
AUDJPY DAILY CHART – 17 JAN 2013
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