Is the trend still our friend on AUD/JPY?
The pair is sitting on a confluence of support levels visible on its 4-hour time frame.
Check out these potential inflection points.
AUD/JPY 4-hour Forex Chart Faster with TradingView
This Aussie pair has been cruising higher since late January, forming higher lows connected by an ascending trend line that’s currently being tested ahead of the Australian CPI release.
This area happens to be right in line with a bunch of other technical levels, which could attract buyers to sustain the climb.
Or is AUD/JPY gearing up for a breakdown and reversal?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
AUD/JPY is inching close to the 61.8% Fibonacci retracement level near S2 (110.01) and the 110.00 major psychological floor.
Reversal candlesticks forming at this region could point to a potential continuation of the rally, possibly lifting the pair back up to the nearby area of interest at the pivot point (112.06), then the swing high close to R2 (114.11).
On the other hand, long red candles closing below the technical confluence could suggest that a longer-term selloff is in order. In this case, look out for a move down to the next bearish targets at S3 (108.86) then S4 (107.70).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on AUD/JPY’s uptrend. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
