AUD/JPY: Bulls Teetering on the Verge

• AUD/JPY has been gradually heading towards the swing high on the H4 chart.
• The SMA 30 has been working as a support.
• The H1 has been bullish making a bearish correction.
• Intraday minor charts were bullish to start the day.

AUD/JPY -Technical Analysis- H4 Chart

The chart shows that the price has been heading towards the North with a good momentum. The simple moving average 30 has been working as a support as well. The level of 97.750 may work as a level of resistance. The price reacted at this level earlier and made a long bearish correction. In fact, the price breached the SMA and produced a little bearish wave. However, upon finding its horizontal support, it headed towards the upside again.

Traders are to be very watchful on the price action around the swing high level. A breakout above the level may push the price towards the North further. On the contrary, if the level produces a bearish reversal pattern, the sellers may look to go short if it breaches the SMA 30.

Price Action Analysis- H1 Chart

The chart shows that the level of 97.750 has been a significant level. The price has already reacted around the level and started making a bearish correction. The buyers may be keen to get a bullish reversal signal around the trend line’s support. A bullish reversal signal at the value areas may push the price towards the level of 97.750.

On the downside, if the price breaches the trend line, the sellers may look to go short in the pair and drive it towards the South. The price may find its support around 96.650.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn