Market NewsTechnical Analysis

AUD/JPY: Confluence Levels May Play a Vital Role to Determine the Next Trend

  • AUD/JPY has made a bullish move on the H4 chart finding its resistance around the SMA 30.
  • A horizontal resistance has been working for the sellers.
  • The H1 chart looks bullish by obeying a trend line.
  • Intraday minor charts have been choppy.
AUD/JPY H4 chart
AUD/JPY H4 chart

AUD/JPY -Technical Analysis- H4 chart

The pair after being bearish on the chart made a strong bullish move. The simple moving average 30 has been working as its resistance. Moreover, a horizontal resistance at 97.930 may work for the sellers since the price reacted at this level earlier several times. Thus, the level may be considered as a confluence level. A bearish reversal pattern may attract the sellers to go short in the pair. The price may find its resistance around 96.850.

On the upside, if the price breaches the SMA 30’s resistance, the buyers may find long opportunities upon having breakout confirmation followed by bullish reversal signal. In that case, the pair may find its resistance around 98.500.

AUD/JPY H1 chart
AUD/JPY H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it consolidated there for a while and produced a bullish engulfing candle. It was bullish with one more candle. However, it then started having bearish correction. The level of 97.730 seems to be working as a horizontal support. Thus, the buyers may keep their eyes to go long around the horizontal support. If a bullish reversal is produced at the confluence level, then the pair may head towards the upside with good momentum finding its resistance around 96.850.

In case of a bearish breakout at the trend line, the sellers may drive the price towards the South. The price may find its support around 96.850.

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

Contact and follow Tareq on Twitter: @tareqfpn

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