- AUD/JPY has been having a long bullish correction on the H4 chart.
- The SMA 30 offers the price more space to travel towards the North.
- The H1 chart has been bullish may consolidate soon.
- Intraday minor charts have been bullish.
AUD/JPY -Technical Analysis- H4 chart
The chart shows that the price has been heading towards the North with good momentum. After being very bearish, it has found its support around 95.500 and produced a bullish engulfing candle. Since then, the bull has been heading towards the North in a hurry. The chart also shows that the simple moving average 30 still offers some space to the price to continue its move. Thus, buyers, on the minor charts may push the price further up.
Nevertheless, the sellers may wait for the price to find its resistance and produce a bearish reversal signal to go short in the pair. The level of 96.900 may work as a flipped resistance. Traders may keep their eyes on the price action around that level.
The buyers on this chart may be careful. Considering the technical aspect, it seems to be overbought. It may change its direction or get choppy anytime soon.
Price Action Analysis- H1 Chart
The chart shows that the price upon producing a double bottom and making a breakout at the neckline, has been heading towards the North with extreme bullish momentum. As expected, the level of 96.560 has been working as a resistance. The price reacted at this level earlier. The sellers may wait for the chart to produce a double top to go short from there. If that happens, the price may find its support again around 95.500.
On the contrary, if the price breaches the level, it may continue its move and find its resistance around 96.900.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn