The Chart of the Week: AUD/JPY bears step up to challenge the bulls at key resistance

AUD/JPY bears taking control of what is expected to be a daily downside extension.
The 4-hour time frame offers a bearish environment at a discount.

Ross J Burland FXStreet

AUD/JPY is bearish across the time frames and the following top-down analysis illustrates where the next swing trading opportunity has arisen on the daily and 4-hour time frame.

Monthly chart

There are bullish prospects from a longer-term perspective with the price rallying from the dynamic trend-line support and extending beyond prior resistance.

The prior resistance will be expected to now act as support in a 38.2% Fibonacci retracement.

Weekly chart

Meanwhile, from a weekly perspective, the bulls have challenged the start of what is expected to be a significant correction from weekly tops:

Daily chart

The price has been rejected at a critical resistance structure on the daily chart, reinforcing the near-term bearish bias in what is expected to result in an extension of the last bearish impulse.

4-hour chart

The 4-hour chart has offered a discount from which bears may expect to see the price melt below the 21-moving average with bearish technical conditions marked by negative MACD.

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Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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