Dukascopy Bank Team
Dukascopy Bank SA
AUD/JPY 4H Chart: Rising Wedge
Comment: Initially, AUD/JPY appeared to be forming an ascending triangle, but a rising wedge now fits the chart better. Nevertheless, this does not change the outlook on the pair, as both patterns indicate weakening demand. In the nearest future the Aussie should violate the support trend-line at 92.80, which will pave the way to the Feb 17 low at 91.60. If the downward pressure persists, and it is highly likely to, the next target will be the Feb low at 89.40. Meanwhile, the upside is limited by immediate resistance at 93.44 (monthly PP and resistance trend-line). Additional supply areas are supposed to be located at 94.00 and at 94.63.
EUR/JPY 4H Chart: Channel Up
Comment: EUR/JPY is not willing to extend January’s sell-off, being that the pair is trading within the boundaries of a bullish channel. However, there are signs the Euro has lost its upward momentum and may soon close beneath the up-trend at 135.00. First, in the recent past the rate has repeatedly failed to surpass the 200-period SMA, which must be breached for the pair to confirm its bullish intentions. Second, the technical indicators do not favour appreciation of the common currency; instead, they imply depreciation. A breach of resistance at 136 should lead to a rally to the upper trend-line 138.00, while a breach of support at 135.00 will expose 134.00, 132.40, and 131.00.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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