- The pair has been down trending on the H4 chart
- Simple Moving Average 30 has been a resistance
- The pair trades around strong support on the H4 chart
- Intraday price action has been bearish
AUD/JPY the Bear Halts at Strong Support
AUD/JPY pair had a rejection at 94.830 twice and made a breakout at 93.550. The sellers may consider it a neckline breakout of a double top. As expected, the price has been heading towards the South. The chart shows that the price reacted at 93.000 several times. As of writing, the pair trades around the level as well. Thus, traders may wait for the price to make a bearish breakout at the level to go short in the pair. Simple Moving Average 30 has been a resistance as well on the H4 chart. A breakout at the support may drive the price towards 92.000.
On the upside, the buyers may wait for the price to produce a double bottom followed by a bullish breakout at Simple Moving Average 30 to look for long opportunities.
The H1 Chart Trades below Yesterday’s Lower Low
The chart showed that it made a bearish breakout at 93.230, which is yesterday’s lower low. Thus, the sellers may keep their eyes at the level for the price to produce a bearish reversal pattern to go short from there. The sellers may drive the price towards 93.865 again. If the price goes below 93.865, it may head towards the South further with good bearish momentum and find its support around 92.250. If the second breakout takes place, it would offer short entries with excellent risk-reward.
The H4 chart suggests that the sellers are to wait for a bearish breakout at a significant level of support. The H1 chart looks good for the sellers so far, but it may find its support again at today’s lower low. A breakout below today’s lower low may make the pair remain bearish for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn