AUDJPY has been consolidating since the beginning of March and has been respecting support and the moving averages very strictly.
The beginning of a trend is on its way towards 71.750
Price broke a descending channel at 107.200 to reach a resistance level at ~108.000. At that price, the pair has bounced back lower from a strong resistance with indications that a downtrend is forming. We currently have an ascending channel/bearish flag which indicates an upcoming breakout to the bottom.
Price has also been heavily rejected at 107.850.
As mentioned In the previous idea on AUDUSD, the pair had to bounce back due to the sign of a reversal. It broke out of the "downward sloping flag" that was formed at the end of a downtrend. AUDUSD is now looking for big highs within the large upward channel.
Since its last low at 0.70570, it has risen to 0.71680 and currently performing a correction before going higher.
At its current "drop" from 0.71680, it has reached an approximate price of 0.71000 and is moving within a "downward sloping flag" which means it will bounce back higher.
Downtrend + Downward sloping flag = Reversal
Look for an entry to ride the big...
