Market NewsTechnical Analysis

AUD/JPY: All Eyes are on the Support, What’s Next?

  • AUD/JPY trades around the SMA 30’s support on the H4 chart.
  • The pair has already produced a bullish engulfing candle.
  • The H1 chart is yet to find its direction.
  • Intraday minor charts may get bullish by producing an ABC pattern.
AUD/JPY H4 Chart
AUD/JPY H4 Chart

AUD/JPY -Technical Analysis- H4 Chart

The chart shows that the price after being bullish made a bearish correction. The simple moving average 30 has held the price as a support and produced a bullish engulfing candle. Many buyers may have been waiting to go long on such bullish signal. However, as of writing, the pair has not gotten bullish yet. If the chart produces another bullish signal, buyers may push the price towards the North. The price may find its next resistance around 98.500.

On the contrary, if the chart breaches the SMA 30, the sellers may wait for the chart to confirm the breakout followed by a bearish signal to go short in the pair. The price may find its next support around 95.850.

AUD/JPY H1 Chart
AUD/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price had multiple bounces at 97.100. At the second bounce, it produced a bullish inside bar followed by a bullish engulfing candle. The price then headed towards the North in a hurry. On its way, it made a breakout at 97.320. The price then started having a bearish correction. The buyers must have been eagerly waiting to go long at the flipped support. However, as of writing, the pair trades below 97.320.

Buyers again may keep their eyes on 97.100 to go long. However, if the price breaches the level, the sellers may jump into the pair and drive the price towards the South. In that case, the price may find its support around 96.600.

Considering both charts, the H4 chart still looks good for the buyers. However, the buyers did not take their chance at the first instance. The SMA 30 on the H4 and the level of 97.100 on the H1 have been working as supports. If they are breached, the scenario may be changed.

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

Contact and follow Tareq on Twitter: @tareqfpn

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