AUD/JPY Price Analysis: Bulls move in on the weekly downside correction

  • AUD/JPY bulls stepping in at a strong demand zone. 
  • The RSI on the 4-hour time frame is now oversold, pointing to a near-term bullish correction. 
  • The weekly chart, however, is in the throes of a downside continuation to a 38.2% Fib.

AUD/JPY is on the verge of a meaningful upside correction on oversold conditions on the 4-hour chart, with a confluence of bullish probabilities from the longer-term market structure and chart patterns. 

The following is a top-down analysis of the cross to illustrate where the next opportunities are within the price action, both bullish and bearish. 

Monthly chart

The monthly head and shoulders are bullish but the market could be due for a downside correction. 

Weekly chart

The W-formation on the weekly chart is making the case for a 38.2% Fibonacci retracement of the weekly bull trend. 

Daily chart

The daily chart has reached a demand zone following a series of bearish and topping candlestick patterns. 

4-hour chart

With RSI oversold, there is an argument for the upside, at least for a correction from this demand zone at this juncture before a weekly continuation. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD battles 1.4200 as US dollar loses ground once again

GBP/USD trades close to 1.4200, reversing towards the three-year high near 1.4240. The US dollar loses ground once again amid risk-recovery. The UK aims for faster vaccinations to regain economic traction before time.


EUR/USD: Indecisive despite Powell's dovish tone

EUR/USD trades flat near 1.2150, having faced rejection at 1.2180 on Tuesday. The pair trades well within Tuesday's indecisive range. Lagarde's comments keep the EUR bulls from cheering Jerome Powell's dovish comments. German data awaited.


Dogecoin: Recovery to $0.1 in jeopardy as massive technical, on-chain barriers surface

Dogecoin has made a shallow recovery from the dip to $0.04 on Tuesday. The 'Meme Coin' is dancing slightly above $0.5 amid the push for gains eyeing $0.1. Despite the recovery, DOGE is not out of the woods yet, especially with technical and on-chain barriers in sight.

Read more

XAU/USD surrenders modest intraday gains, back around $1805 level

Gold failed to capitalize on its intraday positive move back closer to Tuesday’s one-week tops. Sliding US bond yields undermined the USD and provided a modest intraday lift to the metal. Optimism over a strong global economic recovery capped any further gains for the XAU/USD.

Gold news

US Dollar Index: Formidable support is located at 90.00

DXY tests and rebound from the key 90.00 neighbourhood. Further south of this level comes in the 2021 lows at 89.20.

US Dollar Index News