AUDJPY Forecast Follow Up And Update

Hi Traders! AUDJPY forecast follow up and update is here. On May 5th I shared this “AUDJPY Technical Analysis And Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!

My Idea:

On the H1 chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening and the price which is moving lower has reached a strong support zone, respected it and is moving higher. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. Until the strong support zone holds my view remains bullish here. If we get a valid breakout above the most recent downtrend line, we may then consider it as a validation for the bullish view and may expect the price to continue higher further.

 

AUDJPY H1(1 Hour) Chart Current Scenario

On the H1 chart the price action followed my analysis exactly as I expected it to here. The validation for the bullish view which is a valid breakout above the most recent downtrend line happened as I expected it to. In addition to this the price also broke above the last high at 84.732 which we may consider as facts provided by the market supporting the bullish view. The price then moved lower and retested the breakout and created a false break of the downtrend line which we may consider as another fact provided by the market supporting the bullish view. The price then moved higher and delivered around 130 pips move so far.

As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.

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