CyclicalWaves
Short

AUDJPY; Stiff Resistance Ahead

FX:AUDJPY   Australian Dollar/Japanese Yen
After making a bottom 24th of August, this pair has managed to retrace half of the ground it had lost in summer. But there are plenty of reasons to believe that this rise is rather corrective. Apart from the fact that the uptrend is overlapping and forming a channel, it has consumed too much time which is a powerful sign that the bulls have little determination to reverse the trend completely. In layman's time analysis language, the bulls have been offered an equal time - about 72 trading days - to the time period when bears were aggressively selling this pair to new lows but have managed to just retrace 50% of the move caused by the bearish onslaught. This does sound bearish indeed.

Turning on price analysis, we have 3 reasons to go short or at least liquidate if we are long:

1- A massive change of polarity zone. This former support had held the bears at bay 4 times before in February and July.
2- Top area of an ascending channel
3- A bearish Inverted AB=CD pattern

A decline below 88 support will boost our confidence that this pair is headed south again, most probably to make new lows.

Good luck,

Cyclical Waves Group
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out