- AUD/JPY has been bearish on the H4 chart.
- The pair trades below the simple moving average 30.
- The H1 chart looks bearish and may continue its move towards the South.
- Intraday minor charts have been choppy.
AUD/JPY -Technical Analysis- H4 chart
The chart shows that the price has been moving towards the downside with good bearish momentum. It found its horizontal resistance around 97.500 and breached the simple moving average 30’s support. It confirmed the breakout by having a bullish correction and produced a bearish engulfing candle. Thus, the sellers may keep their eyes on the pair to go short from the value areas. The price may find its next support around 95.550.
On the other hand, the buyers may not find trading opportunities with lucrative risk-reward as things stand with the pair. They are to wait either to get a strong bullish reversal pattern or a strong bullish momentum breaching the SMA 30’s resistance.
Price Action Analysis- H1 Chart
The chart shows that the price made a strong bearish move breaching a horizontal support at 96.400. As of writing, the pair seems to be consolidating. It may make a bullish correction and find its resistance around 96.400. A bearish reversal pattern at that level may attract the sellers to go short in the pair and drive the price towards the South. The price may find its support around 95.750.
On the contrary, if the price breaches the resistance, the sellers may find short opportunities if the chart confirms the breakout around the flipped support.
Considering both charts, it seems that the pair may make another bearish move and remain bearish for a while. Thus, the sellers will be keen to keep their eyes on the pair to go short in the pair and drive it towards the South.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn