Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE - In Google Play

View
AUD/JPY: testing the resistance

AUD/JPY: testing the resistance

Information is not investment advice

Long-term

From the very beginning of 2018, the overall direction of AUD/JPY was a decline. On the weekly chart, this downtrend is visible, with the 50-week Moving Average serving as the resistance. Since then, the price has tested that resistance two times. Now, we are observing the third time. Therefore, the question is: will it be just another such time or a start of the long-term trend change.

AUDJPYWeekly.png

Mid-term

Recently, the price came close to the resistance level of 76.00, which is a 6-months high. On the daily chart, it did the same in November but then dropped. Now, as it is testing the 200-day Moving Average being already above the 50-day and 100-day MAs, it is likely to go into consolidation at the present level.

In fact, we are observing a collision of the 2-years downtrend and the 6-months uptrend. For this reason, whatever the outcome, climbing further up will be difficult, and the price will have to fight its way to actually break through the 200-day Moving Average and the resistance level of 76.00. If it does, we will see a new large trend emerging.  

AUDJPYDaily.png

Short-term

In the course of the abovementioned mid-term consolidation, the price is likely to drop to the area of 74.50. That is approximately where the local 1-week downtrend will cross the 6-months uptrend and the 200-period and 100-period MAs. If the price drops below the mentioned Moving Averages, it should be for a relatively short period of time.

The local downtrend is also confirmed by the reading of the Awesome Oscillator, which just crossed the zero-line downwards after two descending consecutive peaks.

AUDJPYH4.png

Overall

In the short-term, the price shows signs of continuing the downward trend. In the mid-term, we are likely to see consolidation. In the long-term – we have to wait to see the overall trend being broken or continued further.

To understand the factors behind the AUD/JPY price movements, read the news and examine the fundamentals for this currency pair.

                                                                                          LOG IN

Similar

Popular

Choose your payment system

Learn more