Monday, 23 July 2018

AUD/JPY Formed a Double Bottom



AUD/JPY bounced off from the resistance at 83.90 and continued falling towards 82.20 after it formed a rather impressive shooting star candlestick at that level on the four-hour time-frame last week. Although the pair formed just as impressive hammer candlestick at the aforementioned support on the same time-frame it continued moving to the downside, so now the question is whether there will be a breakout or will it form a double bottom.  If the pair breaks out below 82.20 it will likely continue falling towards 81.60. On the other hand, if it forms a double bottom and bounces off from the support it will likely retrace back towards 82.70, which is the (MA)89 indicator on the four-hour time-frame.

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