AUD/JPY: Bull Jumps into Bear’s Den

• AUD/JPY is about to make an interesting move on the H4 chart.
• The pair may get bullish on the H4 chart.
• The H1 chart looks very bullish.
• Intraday charts may make a bearish correction.

AUD/JPY- Technical Analysis-H4 Chart

The H4 chart shows that the pair made an excellent bearish move earlier. On its way, it breached the Simple Moving Average 30 and traded below it for a while. The price consolidated at 94.500 and made a strong move towards the North. The last candle seems to be very bullish, but it has not closed yet. If the candle closes like this, the buyers may keep their eyes on the pair to go long above the SMA 30.

However, the SMA still works as the resistance on the H4 chart. If the chart produces a bearish reversal pattern right at the SMA 30’s resistance, the sellers may go short and drive the price towards the South. The price may find its next support around 93.720.

Price Action Analysis- H1 Chart

The pair found its support around 94.500 and made a bullish correction. The price came down and found its support at the same level again. At the second bounce, it produced a bullish engulfing candle. Since then it has been heading towards the upside with good momentum. As of writing, the price has been making bearish corrections on the minor charts. The H1 buyers may wait for the price to find its support and produce a bullish reversal pattern to go long in the pair. The level of 94.940 seems to be a significant level, which may hold the price as a level of support and push the price towards the upside. The price may find its next resistance around 95.600.

On the contrary, if the price breaches 94.940, it may head towards the downside and find its support around 94.500 again.

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

Contact and follow Tareq on Twitter: @tareqfpn