AUDJPY: Price Likely to Drop 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 – July 17
AUDJPY may likely reverse to the downside soon, if there is a further increase in the bear’s pressure and breakdown of $91.421 low level this may push the price down to $89.645 and $89.238 support levels.

AUDJPY Market
Key Levels:
Resistance levels: $94.200, $94.300 $94.400
Support levels: $91.400, $91.300,$91.200

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 pair was able to reach the resistance level at $94.261 by the force from the bulls during yesterday’s session and also sustained and maintained it.

Today’s 4-hourly chart opens with the formation of a bullish candle at $93.751 and further increases to a $94.270 high level which is above the moving averages. This shows that the pair is in an uptrend at the moment.

However, the momentum indicator shows that the price is at around level 79% in the overbought region, this means that the bullish race may likely end soon, and this may compel the downward trend to resume in the nearby days in its long-term view.

AUDJPY Medium-term Trend: BullishThe price movement on the 4-hourly chart is in an upward trend. The sustained bullish pressure pushed the pair further up at the $93.861 resistance level after which the sellers returned and dropped the market price down to $93.546 before the end of yesterday’s session.

Today’s 4-hourly chart opens with a bullish inverted hammer candle at the $93.613 resistance level.

Activities from the buyers further move the price of AUDJPY up to a $94.268 high level after which the sellers inroad briefly dropped the price of the Yen down to a $94.006 low level which is above the moving averages. This means that the bears are coming in gradually to stage a place in the market soon.

The price signal is also pointing down at around level 85% in the overbought region is telling us that the price may likely reverse soon and in this case a downtrend in the coming days in its lower time frame.

Sellers are therefore advised to wait for this action to commence before placing an order.

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