04.01.201614:48 Forex Analysis & Reviews: Technical analysis of AUD/JPY for January 04, 2016

Long-term review

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After a strong downtrend, the AUD/JPY pair started to move higher and currently a correctional upward move could be still taking place. The breakout of the downtrend trend line as well as breakout of the 50% Fibonacci retracement level (applied to the high of May 14 and low of August 24, 2015) supports the idea of an ongoing correctional wave up.

Currently, the price is testing the S1 support for the second time as well as lower trend line of the ascending channel. This could be the price area where bears will start fixing profits giving a way to bulls.

Consider buying AUD/JPY while the price is near S1, targeting R3 resistance, that is 61.8% Fibonacci retracement level. The stop loss should be well below the S1 support.

Support: 85.60

Resistance: 87.80, 89.60, 91.40

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