- AUD/JPY has been on bearish correction on the H4 chart.
- The pair trades right at the support of the simple moving average 30.
- The H1 chart looks bearish but finds a strong support.
- Intraday minor charts have been choppy.
AUD/JPY -Technical Analysis- H4 chart
The chart shows that the price has been moving towards the downside. Considering the momentum, it looks good for the sellers. However, the moving average 30 has been working as a support. As of writing, the pair trades around the moving average. Thus, the buyers may wait for the chart to produce a bullish reversal pattern at the support to go long in the pair. The price may find its resistance around 98.500.
On the downside, if the price breaches the simple moving average 30’s support, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern at the value areas to go short in the pair. In that case, the price may find its support around 96.450.
Price Action Analysis- H1 Chart
The chart shows that the price has been down trending by obeying a trend line. As of writing, the pair trades around yesterday’s lower low. Thus, the sellers may wait for the price to make a bearish breakout at the horizontal support to go short again in the pair. Alternatively, the pair may make a bullish correction and find its resistance at the trend line. If that happens, the sellers may wait for the chart to produce a bearish reversal pattern at the trend line’s resistance to drive the price towards the South. The price may find its support around 96.800.
On the contrary, if the price breaches the trend line’s resistance, the buyers may push the price towards 97.775.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn