Hi Traders! Today I share with you my AUDJPY short term forecast and technical analysis post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the H4 chart here.
AUDJPY H4(4 Hours) Chart Analysis – Uptrend Line Breakout, Lower Lows, ADX Indicator
On the H4 chart, the price which is moving lower has also broken below the most recent uptrend line which we may consider as evidence of bearish pressure. Also, the price moved lower and has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. Also, we could see that the price which was creating a series of higher highs, higher lows so far has made a turn around and has created lower lows for the first time in a while, which we may consider as yet another evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidence supporting this short-term bearish view.
AUDJPY H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Stochastic Oscillator, Strong Resistance Zone
On the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect correction and then further continuation lower. Currently, it looks like a correction is happening. In addition to this based on the Stochastic Oscillator, we could see that the price has reached its extreme, we may consider this as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to continue lower further after pullbacks.
Technical Analysis & Forecast Summary
AUDJPY H4(4 Hours) Chart Analysis
- Uptrend Line Breakout, Lower Lows, ADX Indicator
AUDJPY H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Stochastic Oscillator, Strong Resistance Zone
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 short-term 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.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
I read your analysis regularly. It gives very good trading idea. If you could add possible target levels it will be very helpful for traders like me. thanks a lot
Hi j pugazhenthi, I am really glad to know about that. We will definitely consider this.