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AUD/JPY weakness might result in strong correction

After AUD/JPY had tested 96.93 on June 3, it formed a double top reversal pattern. Prior to that, the pair had broke below the uptrend trendline signalling that the uptrend might be over.

The Fibonacci levels applied to the trend-line breakout point shows that the pair failed to test even the nearest support after the breakout, which is 38.2% Fibs S2 (94.46). This could mean that AUD/JPY is prepearung to test S2, S3 or S4.

It is clear that the pair was trading around 61.8% Fibs R1 (95.50) for the past tree weeks. This time, this level could act as a final bouncing point before the pair will start to move lower. Consider selling AUD/JPY anywhere between the current level and R1. Although, any of the support levels starting from S2 could be a target. It seems reasonable to target the final fibonacci level, which is S4 (92.74). Only a break above R2 (96.17) could result in a potential triple top.

Support: 94.99, 94.46, 93.80, 92.74

Resistance: 95.52, 97.24


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