Hi Traders! AUDJPY technical analysis and forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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!

AUDJPY D1(Daily) Chart Analysis – Bullish Rally, Triangle Pattern, Heikin Ashi Candles

On the daily chart, we have a bullish rally and it looks like this bullish rally is about to continue itself as there are no signs that show this bullish trend is over yet. So until we get any opposite signs my view remains bullish here. Also the price which is moving higher has broken the 61.8%(84.008) Fibonacci expansion level of the first wave and is holding above it. Currently it looks like a flat correction is happening in the form of a triangle pattern. Once this correction completes itself, we may then expect the price to continue higher further.

In addition to this, 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. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.

AUDJPY H4(4 Hours) Chart Analysis – Triangle Pattern Breakout, Higher Highs, Bullish Hidden Divergence

On the H4 chart the price which was moving inside a triangle pattern has broken above the top of it, which we may consider as evidence of bullish pressure. Also, we could see that the price has created higher highs which is a sign of gaining momentum towards the bullish side. Currently it looks like a pullback is happening. In addition to this, we also have a bullish hidden divergence that has formed between the first low that has formed on 23rd April 2021 and the second low that has formed on 4th May 2021 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 bullish view. We may now move down to one more timeframe lower and look for evidences supporting this bullish view.

AUDJPY H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Parabolic Sar, Strong Support Zone, Downtrend Line

On the H1 chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening and the price which is moving lower has reached a strong support zone, respected it and is moving higher. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. Until the strong support zone holds my view remains bullish here. If we get a valid breakout above the most recent downtrend line, we may then consider it as a validation for the bullish view and may expect the price to continue higher further.

Technical Analysis & Forecast Summary

AUDJPY D1(Daily) Chart Analysis 

• Bullish Rally, Triangle Pattern, Heikin Ashi Candles

AUDJPY H4(4 Hours) Chart Analysis 

• Triangle Pattern Breakout, Higher Highs, Bullish Hidden Divergence

AUDJPY H1(1 Hour) Chart Analysis 

• Bullish Trend Pattern, Parabolic Sar, Strong Support Zone, Downtrend Line

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 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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Yordan Kuzmanov
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