Hi Traders! AUDJPY short term forecast and technical analysis 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
AUDJPY H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Key Support Zone, Bullish Divergence, Downtrend Line Breakout, ADX Indicator
On the H4 chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows. Generally after a bullish trend pattern we may expect corrections and then further continuation higher. The correction that we were looking for happened in the form of double wave down, we also had a key support zone that has formed based on the 38.2%(75.577) – 50%(75.109) fibonacci retracement levels of this bullish trend pattern. The price which was moving lower reached this key support zone, respected it and bounced higher from this zone. We also had a bullish divergence that has formed between the first low that has formed on 13th November 2020 and the second low that has formed on 19th November 2020 based on the MACD indicator which we may consider as evidence of bullish pressure. The price then moved higher and broke above the most recent downtrend line which we may consider as another evidence of bullish pressure. Also the ADX indicator gave a bullish signal 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. 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 H1(1 Hour) Chart Analysis – Bullish Trend Pattern, ADX Indicator, Strong Support Zone
On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal here as well 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 another evidence of bullish pressure. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. Until this strong support zone holds my view remains bullish here and I expect the price to continue higher further in the short term.
Technical Analysis & Forecast Summary
AUDJPY H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Key Support Zone, Bullish Divergence, Downtrend Line Breakout, ADX Indicator
AUDJPY H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, ADX Indicator, Strong Support Zone
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.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.
Also you can get one of my strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Yours to your success
Certified Financial Technician