AUD/JPY: The H4 Horizontal Support and H1 Bullish Trend Line Favor the Bull

• AUD/JPY is on consolidation despite having support form a horizontal level and the SMA 30.
• The pair may make a bearish correction to find its support.
• The H1 chart looks good for the buyers.

AUD/JPY -Technical Analysis- H4 chart

The chart shows that the price upon finding its horizontal support at 96.900, it made a move towards the upside. The price then came back and had another bounce. As expected, the pair headed towards the North with a better bullish momentum and made a breakout at 97.720. The buyers might have been looking to go long up to the last swing high. However, the pair seems to have found its resistance around 98.200. It has been on consolidation around the resistance. A breakout may push the price towards 98.600.

On the contrary, if the price does not make a breakout at the resistance, it may make a bearish correction to find its support. In that case, the level of 97.720 may work as a level of support.

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 produced a bullish engulfing candle and headed towards the upside in a hurry. It found its resistance around 97.930 and made a bearish correction. Upon finding its support around 97.700, the price headed towards the North again by making a new higher high. As of writing, the pair is traded around the trend line’s support. The buyers may keep their eyes on the pair to go long upon having bullish reversal pattern around this level.

On the downside, if the price breaches the trend line’s support, the sellers may keep their eyes on the pair to go short. The level of 97.350 may work as a level of support.

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

Contact and follow Tareq on Twitter: @tareqfpn