AUD/JPY: The Bear may Take Control

EagleFX Team EagleFX

AUD/JPY produced a doji candle on the daily chart yesterday. The price made a long bearish move. It has been on a bullish correction. Yesterday’s doji candle suggests that the price may have found its resistance; thus, the price may get bearish and head towards the South. The H4 and the H1 chart look good for the bear as well. Therefore, the pair may have a bearish day today. Let us have a look at these three charts.

Chart 1 AUD/JPY Daily Chart

The chart shows that the price made a long bearish journey before it found its support around the 62.000 zone. It has been having a bullish correction since then. Yesterday’s daily candle came out as a doji candle, which is not a very strong reversal candle. However, if today’s candle comes out as a bearish engulfing candle, it would be an evening star, which is a strong bearish reversal candle. Thus, the sellers may eagerly wait for today’s daily candle.

Chart 2 AUD/JPY H4 Chart

The H4 chart shows that the price made a bullish move upon ABC pattern. It had a rejection around the level of 67.400. Upon producing a bearish candle, it has been heading towards the South. The chart produced four consecutive bearish candles. The sellers should wait for the price to consolidate and create a bearish reversal candle followed by a breakout to offer them a short entry. The price may find its next support around the 63.230 level. If AUDJPY keeps going towards the North, the price may find its next resistance around the level of 67.400.

Chart 3 AUD/JPY H1 Chart

The H1 chart looks bearish too. The price made a correction and consolidated; it continued its bearish journey and found its support at the level of 64.890. The price has been heading up. The sellers should wait for the price to produce a bearish reversal candle followed by a breakout at the level of 64.890 to go short on the pair. The price may find its resistance around the level of 65.680. If the price makes gets bearish, the price may find its next support at the level of 64.135. In case of a bullish breakout, AUDJPY may find its next resistance around the level of 66.550.

The daily chart is not clearly bearish biased. However, the H4 and the H1 chart look good for the bear. Considering these three charts, the pair may end up having a bearish day today.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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