AUDJPY: Bearish Momentum May Commence Soon

The pair looks bullish both in the medium-term outlook and in the long-term outlook.
The currency pair could still decrease despite its positive moves.


AUDJPY Weekly Price Analysis – March 6
Further increase in the bear’s pressure may break down at the $82.010 level and this may push the price down to $81.486 and $80.367 support levels.

AUDJPY Market
Key Levels:

Resistance levels:     $85.100, $85.150 $85.200
Support levels:          $82.010, $81.810,$81.710

AUDJPY Long-term Trend: BullishOn the daily chart, the AUDJPY pair is trading above the moving averages, which means that it’s in a bullish trend zone. The impulse move by the buyers at the $84.933 resistance level during yesterday’s session sustained the bullish momentum and maintained it.

The formation of a doji candle at $84.610 resistance level affirms the presence of the buyers also an indication of a trend reversal as the daily chart opens today.

The aggressive move by the bulls further moves the market price of AUDJPY up at $84.621resistance level as the journey up north continues.

The market price of the Yen is initially up at $85.144 resistance level above the two EMAs; an implication that the price of AUDJPY is in control of the bulls; therefore it’s in an upward trend.

However, divergence is noticed as the Yen is above 80% of the daily stochastic. It indicates that the market has reached the overbought region, because of that the pound is falling to the downsides sooner in the long-term perspective.

AUDJPY Medium-term Trend: BullishThe AUDJPY currency pair is trading in the bullish trend zone in its medium-term outlook. The sustained bullish pressure pushed the pair further up at the $84.702 resistance level after which the sellers returned and dropped the market price down to $84.409 support level, the bulls in-road briefly and moved the market price up at $84.751 resistance level and sustained it before the end of yesterday’s session.

Today’s 4-hourly chart opens with a bullish candle at $84.616 in the resistance area.

The impulse move by the bulls further moves the market value of AUDJPY up at the $85.010 resistance level.

The bulls lost momentum while the sellers’ in-road into the market drops the market price of AUDJPY down to $84.806 support level.

The impulse move by the bears further drops the market value of AUDJPY down to the $84.258 support level after which the bull returns briefly and moves the price up at $84.730 resistance level.

The market Price of AUDJPY is initially up at $84.730 resistance level below the EMA-9 and above the EMA-50, this indicates a slight weakness in the strength of the bulls.

The signal of the stochastic oscillator signal points up at around level 68% approaching the overbought region. It suggests that AUDJPY may commence bearish movement soon i.e the days ahead in the medium-term. Sellers may wait for this action to commence before taking a position in the medium-term.

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