AUD/JPY: Consolidation after Bear’s Strong Move, 92.720 Holds the Key

• AUD/JPY is consolidating after being bearish for a long time on the H4 chart.
• The pair is traded well below the SMA 30.
• The H1 chart has had its second bounce at the last swing low.
• Intraday minor charts have been choppy.

AUD/JPY -Technical Analysis- H4 chart

The chart shows that the price made a strong bearish move. The last bearish wave drove the price towards the South in a hurry. However, the price had a strong bounce at 93.720. Since then, it has been consolidating. The sellers are to wait for the price to produce a bearish reversal pattern at the value area to go short in the pair. The level of 93.720 may be considered in trade management since the level made the pair have a strong bounce earlier.

The buyers, on the other hand, may have to wait for the chart to produce a bullish reversal pattern such as the double bottom to look for long opportunities.

Price Action Analysis- H1 Chart

The chart shows that the price has had its second bounce around 94.200 and made a bullish move. However, it has not made a breakout at the neckline yet. If it breaches the level of 95.200, the buyers may look to go long in the pair. A bearish trend line has been working as a resistance. Thus, the buyers may keep their eyes at the resistance of that trend line before setting their take profit.

On the other hand, if the level of 95.200 works as a resistance, the sellers may wait for the chart to produce a bearish reversal pattern to go short in the pair. The pair may find its next support around 94.200 again. A breakout at that level may drive the price towards the level of 93.720.

Considering both charts, it seems that the bear needs some time to start its move again. Meanwhile, the bull may come over and take the chart. Otherwise, the pair may get sluggish.

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

Contact and follow Tareq on Twitter: @tareqfpn