AUDJPY Forecast Update And Follow Up

Hi Traders! AUDJPY forecast update and follow up is here. On June 9th I shared this AUDJPY Forecast And Technical Analysis in my 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!

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Now let’s summarize the idea first:

AUDJPY D1(Daily) Chart Analysis – Key Resistance Zone, Parabolic Sar, Volumes Indicator, Stochastic Oscillator

On the daily chart, we have a key resistance zone that has formed based on the 161.8% fibonacci expansion level of the first wave at 77.055 and the 161.8% fibonacci expansion level of the second wave at 76.960. The price which was moving higher reached this key resistance zone, respected it, and is currently moving lower. While looking at the Parabolic Sar we could see that the dot is above the price. Also while looking at the Volumes indicator we could see that the volumes were dropping. In addition to this based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bearish pressure. We may now move down to lower timeframes and see if we can find evidences supporting this bearish view.

AUDJPY H4(4 Hours) Chart Analysis – Bearish Divergence, ADX Indicator, Parabolic Sar

Looking at the H4 chart we could see that the price has created a bearish divergence between the first high that has formed on 3rd June 2020 and the second high that has formed on 5th June 2020 based on the MACD indicator which we may consider as evidence of bearish pressure. Also while looking at the Parabolic Sar we could see that the dots are above the price which we may consider as another evidence of bearish pressure. In addition to this the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. So the bottom line here is that the H4 chart has evidences supporting the bearish view.

 

AUDJPY H1(1 Hour) Chart Analysis – Bearish Divergence, Bearish Trend Pattern

Looking at the H1 chart we could see that the price has created a bearish divergence between the first high that has formed on 3rd June 2020 and the second high that has formed on 7th June 2020 based on the MACD indicator which we may consider as evidence of bearish pressure. Also after the bearish divergence, the price which is moving lower has created a bearish trend pattern which we may consider as another evidence of bearish pressure. So based on all this, my view remains bearish here and we may expect further continuation lower after retraces.