- AUD/JPY is on consolidation around a strong horizontal support.
- The simple moving average 30 has been working as a resistance.
- The H1 chart looks bullish breaching a bearish trend line.
- Intraday minor charts have been bullish in Tokyo session.
AUD/JPY -Technical Analysis- H4 chart
The chart shows that the price after being bearish had a bounce at 94.830. It consolidated there for a while and made a bullish move again. The candle closed within the moving average 30’s resistance. The sellers may want to wait for the price to produce a bearish reversal pattern to go short below 94.830. The price may find its support around 93.700.
On the contrary, if the price breaches the simple moving average 30’s resistance, the buyers may keep their eyes on the pair to go long upon having breakout confirmation followed by a bullish reversal pattern from the value areas. In that case, it may find its resistance around 96.100.
Price Action Analysis- H1 Chart
The chart shows that the price consolidated around 94.830 for quite a while. It then made a bullish move and made a breakout at the trend line, which has been obeyed by the pair multiple times. However, the chart did not produce any bullish reversal pattern after the breakout. Thus, the buyers still have not engaged themselves to go long in the pair based on this chart. A bullish reversal may push the price towards the level of 95.700.
If the price continues its bearish move and goes back within the trendline’s resistance again, the pair get bearish again up to the level of 94.830.
Considering both charts, it seems that the pair has been choppy for quite a while. Thus, the next breakout may play a crucial role to determine its next route. The next trend may stay for a longer period as well.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn