AUD/JPY has been consolidating after an early February rally from 88.21 to almost 93.The consolidation range is roughly between 91.05 and 93. Both of these are "powerlines" or support/resistance pivots. Buying from Support: Keep it simple. If market nears 93 with a stochastic 20 and RSI 40 (S20-R40) combination in the 4H chart, I am considering a buy. The 4H chart shows a tad bullish bias in the short-term because the RSI has tagged 70, and has remained above 40 - the reason why I would be looking for that S20-R40 combination. However, a break below 91 given some elbow space should shift the market to bearish in the short-term. (AUD/JPY 4H chart: click for full view) Buying from Resistance: The daily chart shows a larger degree of consolidation, though there is a slight bearish bias because the RSI tagged 30, but has been kept under 60. If price tests that 92.90-93 area again, with a S80-R60 combination, I will consider shorting. Also note the falling resistance projected from the Oct. 2013 high around 95.60. (AUD/JPY Daily Chart: click for full view) I prefer the long in this scenario because of the swap. Anticipate Breakout: Also, I will be getting ready to play the breakout. A break below 91 opens up 88.25, while a break above 93 opens up 94.50 then 95.60.