AUD/JPY: Bull Roars amid Bear’s Territory

• AUD/JPY has been having a bullish correction.
• Sellers may keep their eyes on the price action around the SMA 30.
• The H1 chart has been bullish.
• Intraday minor charts have been bullish.

AUD/JPY- Technical Analysis-H4 Chart

The chart shows that the price made a strong bearish move earlier. Upon having a bounce around 93.000, it produced a bullish pinbar followed by a bullish engulfing candle. As expected, the price since then has been heading towards the North. The simple moving average 30 has been working as a resistance. If the price produces a bearish reversal pattern at the SMA 30’s resistance, the sellers may go short in the pair and drive the price towards the South. The price may find its support again around 93.000.

If the price breaches 93.000, the sellers may drive the price towards the South further. It may make that move with more good bearish momentum. In that case, the level of 91.750 may hold the price as the next support.

Price Action Analysis-H1 Chart

The chart shows that it has been gradually moving towards the upside. As of writing, the pair trades above 94.625, this is the last swing high. It signifies that the buyers may keep their eyes on the pair to go long and push the price towards the North. The price may find its next resistance around 95.330. If the price continues to move towards the upside, a bullish trendline will be evident. That may play a vital role to determine its direction based on the H1 chart.

The sellers on the other hand, must wait for the price to produce a bearish reversal pattern and show some bearish strength to look for short opportunities.

The H4 chart needs time to get bearish. The H1 chart looks good for the buyers. Thus, sellers may have to be patient to get short opportunities at the value areas. Buyers on the H1 chart may change the whole scenario as it looks very bullish.

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

Contact and follow Tareq on Twitter: @tareqfpn