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 Traders Academy 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 – Bullish Convergence, Bullish Hidden Divergence
On the H4 chart, after the strong bearish move currently it looks like a correction is happening in the form of potential double wave to the upside. The price which was moving lower created a bullish divergence that has formed between the first low that has formed at 80.112 and the second low that has formed at 78.785 based on the MACD indicator Then the price moved higher and broke above the last high at 81.472 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, we also have a bullish hidden divergence that has formed between the first low that has formed at 78.785 and the second low that has formed at 80.474 based on the MACD indicator which we may consider as another evidence of bullish pressure. So the bottom line here is that the H4 chart has evidences supporting the bulls. We may now move down to lower timeframe and look for evidences supporting this short term bullish view.
AUDJPY H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Range, Two Key Support Zones
Looking at the H1 chart, based on the Heikin Ashi candles we can see that we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. After the strong bullish move currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(80.683) Fibonacci expansion level of the first wave, 61.8%(80.480) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(80.144) Fibonacci expansion level of the first wave and 100%(80.068) Fibonacci expansion level of the second wave. Until both these key support zones hold my view remains bullish here and I expect the price to move higher further in the short term.
Technical Analysis & Forecast Summary
AUDJPY H4(4 Hours) Chart Analysis
- Bullish Convergence, Bullish Hidden Divergence
AUDJPY H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Range, Two Key Support 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 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
Traders Academy Club Team
