AUDJPY Analysis – May 2
AUDJPY leverages the 91,120 significant price level to keep its bullish campaign on track. After the currency broke out and made a strong price rise, weakness began to set in among the buy-traders around 92.930. This led to the first setback in the bullish agenda, but the market leverages the strong support at 91.120 to push further. AUDJPY fails again at 95.620, but the 91.120 support keeps the price afloat and the bullish agenda on track.
AUDJPY Key Levels
Resistance Levels: 97.040, 95.620, 92.930
Support Levels: 91.120, 80.260, 78.850
AUDJPY Long Term Trend: Bearish
AUDJPY has been involved in a very intense price struggle before now as bulls and bears try to claim control of the market. Hence, the price can be seen vacillating strongly between the key levels of 85.830 as resistance and 78.850 as support. This led to the formation of a series of price structures that the bulls exploited fully to cause a price upsurge.
This led to a more than 13% price increase before weariness kicked in among the bears. By this time, however, the market has risen to a safe spot above the strong support at 91.120. Hence, the market continuously leverages this key level to keep the bulls’ dominance alive. There is a bit of weakness in the market as shown by the MACD’s (Moving Average Convergence Divergence) drooping line. However, AUDJPY leverages on the lower Bollinger Band, which confluences with 91,120 to bounce back.
AUDJPY Short Term Trend: Bearish
On the 4-hour chart, the price is once again dropping towards the 91,120 strong support for the third time in about a month. Hence, the price has traded to the downside of the middle Bollinger Band. The bulls, however, will be looking to repeat their trick of leveraging the support level to keep their bullish campaign alive. The price will bounce back towards the 95.620 resistance level.
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