AUD/JPY: The Pair in Search of Its Next Direction

• AUD/JPY has been traded within a range on the H4 chart.
• The pair trades below the simple moving average 30.
• The H1 chart seems to be looking for its support.
• Intraday minor charts have been bearish.

AUD/JPY- Technical Analysis-H4 Chart

The chart shows that the price upon finding its resistance around 95.600, made a strong bearish move. On its way, it made a bearish breakout at the simple moving average 30. The price then made a bullish correction and breached the SMA 30. However, the very next candle closed as a bullish inside bar closing right at the SMA 30’s support. The buyers may have waited there to go long upon getting a bullish reversal candle at that level. However, that did not happen. The pair rather produced another bearish candle and closed below the SMA 30. It suggests that the SMA 30 may not be working as a significant level of support/resistance here. The pair may get choppy before showing its next direction.

Price Action Analysis- H1 Chart

The charts shows that the price has been traded around 94.575 for a while. The pair produced a morning star on the H1 chart earlier. However, the buyers were not sanguine to push the price towards the North. It was expected, since the level is not a flipped support where the price made a bullish breakout recently. Nevertheless, the pair reacted at this level earlier buy having a strong bounce at its last bullish move last week.

If the chart produces another bullish reversal pattern, the buyers may go long above today’s higher high at 94.800. The buyers may keep an eye on 95.120, which may work as a resistance.

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

Contact and follow Tareq on Twitter: @tareqfpn