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