The price of the Australian Japanese Yen (AUDJPY) rose today, breaching the strong resistance level 76.70, the price has been trading below this level since May of last year.
At the time of writing this analysis, the price is trading at 76.95, the breach has not been confirmed yet with the closing of the 4-hour candle and a re-test of the 76.70 level.
The price is now moving in a sideways range confined between 107.76 - 107.35, which represent Fibonacci levels 23.6% and 38.2%, respectively.
if the break the support level 107.35 and close below? that will be a signal for more moving down toward 106.86 .
The breach of the resistance level, 107.76, is required to rise towards f 108.15.
The price is moving in a falling channel on the 4 hour chart. Today, the price tested the upper limit of this bearish channel before returning and bouncing down.
On the 1 hour chart, we notice the beginning of the reversal pattern double tops with the neckline at 1,2451.
The breach of this level and the closing below it is a condition for further decline...
Last week, the pair traded in a cross band between the levels of 1.12 and 1.13 within the falling channel, as shown on the graph.
This sideways move of the pair perfectly reflects the psychological state of the hesitant market between fear and optimism about the economy and the Corona virus
As the price moves in a cross-band, the best strategy is to capture buy...