AUD/JPY: Sellers Waiting for the Opportunities

• AUD/JPY has been bearish on the H4 chart.
• The pair is having a bullish correction.
• The H1 chart may get bearish if it make a breakout at today’s low.
• Intraday price action has been bullish.

AUD/JPY- Technical Analysis-H4 Chart

The H4 chart shows that the price upon finding its horizontal resistance around 95.800 made a strong bearish move. The price headed towards the South in a hurry by producing four consecutive bearish candles. The chart then produce a bullish inside bar. As of writing, the current candle seems to be bullish as well. The sellers may wait for the chart to produce a bearish reversal candle at the value areas to go short in the pair again. The pair may find its support again around 93.100.

On the contrary, if the price continues to head towards the North and makes a bullish breakout at the SMA 30, the buyers may look to go long in the pair. As things stand, it is going to take time to produce such scenario.

Price Action Analysis- H1 Chart

The chart shows that the price after making a very strong bearish move, found its support around 94.500. The price consolidated there for a while and then started heading towards the North. It seems to have found its resistance around 94.770, where it produced an inverted hammer followed by a doji candle. As of writing, the current candle seems to be very bearish. If the candle closes as a bearish engulfing candle, the sellers may drive the price towards the last swing low. A breakout at the last swing low may attract more sellers to go short upon having breakout confirmation followed by a bearish reversal pattern. The pair may find its next support around 93.850.

Both charts look good for the sellers. Traders seem to be waiting for bearish reversal pattern at the value areas to go short. Thus, it seems that the pair may make another bearish move.

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

Contact and follow Tareq on Twitter: @tareqfpn