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 – Key Resistance Zone, Bearish Divergence, CCI Indicator, Parabolic Sar
On the H4 chart, the price reached a key resistance zone that has formed based on the 61.8%(90.124) Fibonacci expansion level of the first wave. The price respected this zone and is currently bouncing lower from it. Also, we have a bearish divergence that has formed between the first high formed on 4th April 2023 and the second high formed on 20th April 2023 based on the MACD indicator which we may consider as evidence of bearish pressure. We also have a bearish divergence that has formed between the first high formed on 3rd April 2023 and the second high formed on 20th April 2023 based on the CCI indicator which we may consider as another evidence of bearish pressure. Also, based on the Parabolic Sar we could see that the dots are above the price 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 evidences supporting this short term bearish view.
AUDJPY H1(1 Hour) Chart Analysis – Lower Lows, Uptrend Line Breakout, Parabolic Sar, Two Strong Resistance Zones
On the H1 chart, we should note that the price which was creating series of higher highs, higher lows structure so far in recent times has created lower lows for the first time which we may consider as a sign favoring the bears. In addition to this, we have this lower lows on the MACD indicator as well, which is a sign of gaining momentum towards the bearish side. Also, we have a good uptrend line that has formed and the price which was respecting this dynamic support so far has currently broken and is holding below it, we may consider this as another evidence of bearish pressure. Also, based on the Parabolic Sar we could see that the dots are above the price here as well which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears here as well and until the two strong resistance zones (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
AUDJPY H4(4 Hours) Chart Analysis
- Key Resistance Zone, Bearish Divergence, CCI Indicator, Parabolic Sar
AUDJPY H1(1 Hour) Chart Analysis
- Lower Lows, Uptrend Line Breakout, Parabolic Sar, Two Strong Resistance Zones
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.
