I wanted to buy AUD/JPY after it showed support between 78 and 78.50 a few times in May. This area was also support in January and February. Essentially, I was trying to buy off of a consolidation range support seen in the daily chart. AUD/JPY Daily Chart 5/26(click to enlarge) This week, price already moved off the 78.40 area as we can see in the 1H chart. But I still put in some orders around 78.50. At the time I felt like there wasn't that strong a chance for price to fall back here if it is going to move back towards the 80.50-80.60 consolidation range resistance. AUD/JPY 1H Chart 5/26(click to enlarge) Now, take a look at the 1H chart, and you can see that there was a strong dip over the Asian session. I have not figured out what it is that gave JPY this strength, but it was seen across the board. Some Fundamental Consideration: The only important event risk was the G7 Summit, where Japan's Prime Minister Abe warned about risk to the global economy. Perhaps this was a bit risk-averse, and the JPY sometimes often on risk aversion. At the end of the day, I feel the JPY should still be pressured as the BoJ is still quite dovish. The Reserve Bank of Australia (RBA) is dovish too, but not quite as dovish. It is actually trying to turn the corner, but Australia's stalling economy has not yet been able to push the RBA into the hawkish camp that the FOMC is in. Back to the Technical: Now, the dip during the Asian session triggered a couple of buy entry orders I had. I didn't expect these to be triggered. Also, the sharp decline would have made avoid a manual entry. However, it appeared that the market also had thoughts of buying if AUD/JPY was in this 78.50 area, and the pair surged back above 79. I must say, this feels like a gift from the forex gods. As we get into the US session, AUD/JPY is testing the 5/25 high. A break should open up the 80.50 area, which represents the resistance of a consolidation range. A slightly more aggressive target to 81-81.15 is also viable. I have both of these targets. Now, my decision will be whether to pull up the stop to just under 79.00. I would be able to lock in profit, but if the market is still bullish, but volatile, I might miss out of the rally towards 80.50. I might pull up the stop for one of the positions.