AUD/JPY Is Falling

AUD/JPY has been moving sharply to the downside for the past few hours after the pair formed a spinning top candlestick on the one-hour time-frame at the resistance at 83.25. The pair has all but reached the support at 82.50, which coincides with the (MA)89 indicator on the four-hour time-frame. If it breaks out below that indicator, and considering how bearish the pair is it may, then next target will likely be at the last low at 81.85. A breakout below that level in turn could lead to a further move to the downside towards 80.50, which is a support that the pair has been testing repeatedly for the past few months.

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.

AUD/JPY Is Falling

AUD/JPY moved to the upside for several days until it finally found resistance at 84.15 and bounced off from that level after forming a pair of candlesticks on the four-hour time-frame that were a great signal for the reversal. Namely, it formed a shooting star candlestick and a doji candlestick below the aforementioned resistance level. Currently the pair is testing the support at 83.35 and it is very likely to break out below that level as well. If or when it does, it will likely continue falling towards the next support, which is at 82.85 and coincides with the (MA)89 indicator on the four-hour time-frame. A breakout below that support too could lead to a further drop towards 82.00.