AUD/JPY Price Analysis: Daily resistance continues to hold
|- AUD/JPY bears are defending a critical daily resistance.
- There are bearish prospects for a fresh low and deeper test of weekly support.
As per prior analysis, AUD/JPY Price Analysis: Bulls come up for air into the bear's lair, the market is stalling in the daily resistance and on continued failures, the bears will be in for another go at the weekly support:
Weekly chart
The weekly support could be a tough nut to crack and a breakeven target will be an important feature of the trading plan.
Daily chart
The price is meeting the prior daily lows and struggling to make further headway, and so long as the resistance holds, a downside extension could be on the cards:
4-hour chart
The price will need to break below support for bears to engage with a higher conviction.
As explained, the weekly support is menacing so bears would be prudent to seek out a breakeven opportunity at the earliest opportunity as soon as a new bearish structure is formed on the way down.
For example, as illustrated in the 4-hour chart above, a close below the second layer of the old resistance structure near 80.70 would be an appropriate time to trailing the stop loss.
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