AUDJPY Forecast And Technical Analysis

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AUDJPY Forecast And Technical Analysis

Hi Traders! AUDJPY forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).

AUDJPY D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence,Volumes Indicator

On the daily chart, we have a key resistance zone that has formed based on the 161.8% fibonacci expansion level of the small wave at 77.180 and the 100% fibonacci expansion level of the big wave at 77.912. The price which was moving higher reached this key resistance zone, respected it, and is currently moving lower. In addition to this, the price has created a double top with the bearish divergence that has formed between the first high that has formed on 7th June 2020 and the second high that has formed on 22nd July 2020 based on the histogram and moving averages of the MACD indicator. Also, the volumes are dropping based on the Volumes Indicator. We may consider these as evidences of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.

AUDJPY Forecast And Technical Analysis

 

 

AUDJPY H4(4 Hours) Chart Analysis – Uptrend Line Breakout, CCI Indicator

On the H4 chart, we had a first leg down and then the price which was moving inside a consolidation has currently broken below it. In addition to this, we have a good uptrend line that has formed and the price which was respecting this dynamic support so far and has currently broken below it. We may consider these as evidences of bearish pressure. Also, we have an uptrend line breakout based on the CCI indicator as well, which we may consider as yet another evidence of bearish pressure. So based on all this, my view is bearish here and I expect the price to continue lower further.

AUDJPY Forecast And Technical Analysis

 

Technical Analysis & Forecast Summary

AUDJPY D1(Daily) Chart Analysis

  • Key Resistance Zone, Bearish Divergence,Volumes Indicator

AUDJPY H4(4 Hours) Chart Analysis 

  • Uptrend Line Breakout, CCI Indicator

 

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of my strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

 

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