AUDJPY – Some retracement anticipated before a continuation
|If we look at the daily chart of AUDJPY, we can see that Friday’s session closed with a Kumo breakout. We can also see that there has been a recent bullish future Kumo twist which suggests that we are likely to see higher prices to come. Tenkan Sen is upward sloping, indicating that there is buying momentum behind the move in the longer term. This idea is further supported by Senkou Span A, which is also upward sloping. Kijun Sen can be seen levelling off at the same price level as Senkou Span B, which could very well act as a healthy support level. Currently, the price has found resistance, and an upward continuation move would be invalidated if the price fails to break above this sloping resistance level.
Looking at the 4-hour chart, we can see that buying momentum in the medium term is dissipating. Tenkan Sen and Kijun Sen are beginning to level off as is future Senkou Span A and future Senkou Span B, indicating that we are likely to see some retrace towards the Kumo before we see any more upside price movement.
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