AUD/JPY Price Analysis: Bulls move in on the weekly downside correction
|- AUD/JPY bulls stepping in at a strong demand zone.
- The RSI on the 4-hour time frame is now oversold, pointing to a near-term bullish correction.
- The weekly chart, however, is in the throes of a downside continuation to a 38.2% Fib.
AUD/JPY is on the verge of a meaningful upside correction on oversold conditions on the 4-hour chart, with a confluence of bullish probabilities from the longer-term market structure and chart patterns.
The following is a top-down analysis of the cross to illustrate where the next opportunities are within the price action, both bullish and bearish.
Monthly chart
The monthly head and shoulders are bullish but the market could be due for a downside correction.
Weekly chart
The W-formation on the weekly chart is making the case for a 38.2% Fibonacci retracement of the weekly bull trend.
Daily chart
-637465955014107288.png){kind=link}
The daily chart has reached a demand zone following a series of bearish and topping candlestick patterns.
4-hour chart
With RSI oversold, there is an argument for the upside, at least for a correction from this demand zone at this juncture before a weekly continuation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.