As I have explained many times before AUDJPY is connected to equities markets and always watch China50 index. When China stock market is plummeting investors fear that it will slow global eco activity and that causes equities to go down (China A50 Cash) and vice versa. We had an equity bounce today caused by China stimulus but that could easily be a short term fix.
Technically we observe a regular bullish divergence which is causing the retracement towards POC and POC2. POC (61.8,H4) comes within 82.15-30 zone and the rejection could aim for 81.30. Only if we see a H4 close below 81.00 we should see 79.10 again.
If a retracement continues above POC, bears will have another chance to short it (88.6,previous double bottom, EMA89) within 83.30-50 zone and the price should reject towards POC and above mentioned targets.
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The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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