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AUD/JPY: Is the Bear in the town?

EagleFX

AUD/JPY produced a bearish engulfing candle yesterday. The pair made a strong bullish move and produced a Spinning Top on Monday. Two consecutive bearish candles have set a bearish tone. The pair may get bearish in coming days. The price in the major intraday charts seems to be bullish corrective. A significant level may work as a level of resistance. If the level produces a bearish momentum, the pair may continue its bearish move today as well. Let us now have a look at three major charts.

Chart 1 AUD/JPY Daily Chart


The chart shows that the price headed towards the North and had a rejection at 76.400. The price had a strong rejection earlier at the same level and made a long bearish move. The pair produced a Spinning Top followed by a bearish engulfing candle. Thus, the sellers may wait for the price to consolidate and get a bearish reversal candle to go short in the pair. The price may find its next support around the level of 67.700. On the other hand, if the price gets choppy and consolidates, a bullish breakout may create more bullish momentum. The price may find its next resistance around 79.300.

Chart 2 AUD/JPY H4 Chart


The chart shows that the price made a strong bearish move and had a bounce at 74.520. The price has been in consolidation. The level of 75.200 may work as consolidation resistance. If the level produces a bearish reversal candle, the sellers may go short below the level of 74.520. The level of 75.200 is a very significant level, where the price in the H1 chart reacted heavily as well. Thus, a bullish breakout at that level may make the price push towards the North with a sluggish pace. The price may find its next support around 73.000. In case of a bullish breakout, the level of 76.250 may work as a level of resistance.

Chart 3 AUD/JPY H1 Chart


The H1 chart shows that the price reacted at the level of 75.200 several times. As of writing, the pair is trading above the level. However, the H1 chart has not made a breakout yet. In case of an H1 bullish breakout, the price may get bullish and move towards the North. The price may find its next resistance around 75.450. If the level works as a level of resistance, the sellers may go short if it produces a bearish reversal candle. The price may find its next support around 73.725.

Considering these three charts, it seems that it is going to be an interesting battle between the buyers and the sellers. Since the daily chart is a bit bearish biased, the pair may end up producing a bearish candle today.

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