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 daily chart here.
AUDJPY D1(Daily) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator
On the daily chart, we have a strong bullish momentum and based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Currently, it looks like a correction is happening, So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
AUDJPY H4(4 Hours) Chart Analysis – Two Key Support Zones, Bullish Hidden Divergence, Bullish Divergence
On the H4 chart, currently it looks like a correction is happening and while measuring the legs, we have two key support zones that has formed. The first key support zone is formed based on the 100%(94.736) Fibonacci expansion level of the big wave and the 100%(94.895) Fibonacci expansion level of the small wave. The second key support zone is formed based on the 161.8%(93.436) Fibonacci expansion level of the big wave the 161.8%(93.907) Fibonacci expansion level of the small wave. The price which was moving lower, has currently reached the first key support zone. Also, we could see that the price which was moving lower has created a bullish hidden divergence that has formed between the first low at 90.258 and the second low at 95.564 followed by a potential bullish divergence that is forming based on the MACD indicator which we may consider as another evidence of bullish pressure. So based on all this, until the key support zones hold my short term view remains bullish here. A valid breakout above the most recent downtrend line would be the validation for this bullish view.
Technical Analysis & Forecast Summary
AUDJPY D1(Daily) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator
AUDJPY H4(4 Hours) Chart Analysis
- Two Key Support Zones, Bullish Hidden Divergence, Bullish Divergence
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
