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AUD/JPY Price Analysis: Bulls eye the 86.00 area

  • AUD/JPY bulls are looking for an optimal entry point.
  • Weekly resistance in the 86.00 area could be calling. 

AUD/JPY has been correcting from the daily highs this week and is now basing around a daily 61.8% Fibonacci retracement level near 84 the figure. The price has rallied from there leaving a strong bullish close on the charts from where demand could follow through for the days ahead and ultimately lead to prospects of a fresh high in this daily bullish cycle.

AUD/JPY daily chart

The bigger picture, however, is clouded by weekly highs. There is also a W-formation that is forming with this week's business. While there is scope to the upside, buying so close to resistance is always riskier:

AUD/JPY weekly chart

Meanwhile, for those that have more of an appetite for riskier set-ups, the 4-hour time frame is shaping up:

AUD/JPY H4 chart

The price is correcting from a strong bullish impulse and should the prior highs act as support, then demand could see the price lifted beyond the current resistance and continue towards the weekly resistance area. 

Author

Ross J Burland

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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