- AUD/JPY has been choppy on the H4 chart.
- The SMA 30 has been working as a resistance.
- The level of 97.350 may play a significant role to determine its next route.
- Intraday minor charts have been bullish trading around yesterday’s high.
AUD/JPY -Technical Analysis- H4 chart
The chart shows that the price after breaching the simple moving average 30 had a bounce at 96.880. It produced a bullish inside bar and headed towards the North. The buyers might have waited for the chart to produce a bearish reversal pattern at the SMA 30’s resistance. However, the level of 97.350 has come into play and worked as a resistance. The price has reacted at this level by producing a bearish engulfing candle. As of writing, it has been heading towards the level again. The sellers may be very keen to get a bearish candle followed by a breach at 97.060 may generate bearish momentum and drive it towards the swing low.
On the other hand, if the price breaches the horizontal level and confirms the breakout, the buyers may go long in the pair upon having bullish reversal signal at the value areas. In that case, the price may find its resistance around 97.770.
Price Action Analysis- H1 Chart
The chart shows that the pair trades around a very interesting level. The level of 97.350 and a trend line’s resistance may make the traders keep their eyes on the pair to find its next direction. Since it is a confluence level, the next move may generate good momentum.
A bearish reversal pattern may attract the sellers to go short in the pair. On the contrary, a breakout followed by confirmation and a bullish reversal candle at the breakout level may attract the buyers to go long in the pair and push it towards the North.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn