Across the board most of the JPY pairs are showing signs of a potential bullish move, with most testing major levels of support and showing momentum slow down from their recent bear trend. AUD pairs across the board are also showing signs of bullish momentum providing me with even more confidence that this pair is going to see some significant upside movement next week.
The daily chart is showing that price action has deviated quite significantly from the 50 EMA indicating that AUD/JPY is very over sold and a potential pull back to this moving average could occur over the next week. Price action has tested a key support level at 84.500 and rejecting slightly forming a bullish candle with large wicks at either end indicating some indecision in the market. This 84.500 level has proven to hold as support and resistance in the passed suggesting that price will hold at level and potentially reverse. The next key level to look for on the daily chart is the 85.800 level which has shown to be a significant level of support and resistance in the passed. Once broken price action could look to test the 87.300 level. The daily RSI graph is just below the 30 level indicating that price may be oversold.
Similar to the daily chart, the 4 hourly chart is showing that price action is severally deviated from its 50 EMA suggesting that price action could experience pull back. A large bullish divergence has formed on the RSI for the major part of this bear trend, indicating that the move was underpricing this asset.
The hourly chart is showing that there is a large bullish wedge forming and converging towards the key level of support/resistance at 84.500. Once price has broken from this formation, there could be a retest of the upper trend line of the wedge pattern followed by a continuation to the upside. Price action will need to make a clear break through the 85.300 level for price to move any higher, a break of this level will be a management point for this trade.
The daily chart is showing that price action has deviated quite significantly from the 50 EMA indicating that AUD/JPY is very over sold and a potential pull back to this moving average could occur over the next week. Price action has tested a key support level at 84.500 and rejecting slightly forming a bullish candle with large wicks at either end indicating some indecision in the market. This 84.500 level has proven to hold as support and resistance in the passed suggesting that price will hold at level and potentially reverse. The next key level to look for on the daily chart is the 85.800 level which has shown to be a significant level of support and resistance in the passed. Once broken price action could look to test the 87.300 level. The daily RSI graph is just below the 30 level indicating that price may be oversold.
Similar to the daily chart, the 4 hourly chart is showing that price action is severally deviated from its 50 EMA suggesting that price action could experience pull back. A large bullish divergence has formed on the RSI for the major part of this bear trend, indicating that the move was underpricing this asset.
The hourly chart is showing that there is a large bullish wedge forming and converging towards the key level of support/resistance at 84.500. Once price has broken from this formation, there could be a retest of the upper trend line of the wedge pattern followed by a continuation to the upside. Price action will need to make a clear break through the 85.300 level for price to move any higher, a break of this level will be a management point for this trade.