Is AUD/JPY Playing the Card in Its Sleeve? — Fx Information – EarnForex Information

The Australian dollar vs . the Japanese yen currency pair looks to have been conquered by the bears. Is it so or is it just a mirage?

Extensive-time period point of view

Just after the false piercing of the 71.09 help, the price began an appreciation that peaked at 75.sixty seven. From there, a downwards movement began, just one that breached the 73.ninety three help and printed the low at 73.55.

The candle that came just after the one that printed the low — that is November 15 — was bullish and, alongside the previous just one, crystalized a piercing sample.

For the reason that the piercing sample shaped at an important help level — seventy three.93 — and in the context of an ascending trend — which begun at 71.09 — the bulls have all the reasons to say that they are starting to overpower the bears.

To all this, the November 19 pin-bar also is a fact that offers credit to the bulls, as the bearish try to drive costs down was repelled.

The only part that is not favoring the bulls is that, total, the prices are falling — see seventy nine.forty one. So, the ascending movement from 71.09 could be regarded as a pause from the bearish facet, as they prepare even further drop afterwards on. If this is the case, any appreciation that starts off from seventy three.ninety three will fail to make a new bigger superior with regard to 75.sixty seven.

But, for that to be attainable, a bullish movement has to start in the first place. It can be considered that just one would have begun when the high of November eighteen is taken out, and the price goal in such an event is 76.02.

Only if the low of November 19 is taken out, then it can be said that the bears are nevertheless in control.

Brief-time period point of view

Just after confirming the 75.sixty two resistance, the price declined and printed a symmetrical triangle, a pattern which is categorised as a continuation pattern — hence expanding the expectations for further drop to take place.

Nonetheless, two components can render this sample as being currently invalid. The first just one is that the base of the triangle — the swing that connects with the left-ends of both resistance and support trendlines — is an exhaustive movement, this means that the bears ran out of steam.

The second just one is that the depreciation that precedes the triangle is a relatively shorter just one, hence of lesser relevance.

So, if the support trendline of the triangle is pierced, then seventy three.10 is in reach. On the other hand, if it is confirmed as support, alongside with seventy three.ninety, then seventy four.ninety six is the next goal.

Amounts to keep an eye on:

D1: seventy three.ninety three 76.02
H4: seventy three.ninety seventy three.10 seventy four.ninety six

If you have any issues, feedback, or opinions pertaining to the Technical Examination, sense free of charge to put up them making use of the commentary variety under.

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