09.06.201513:24 Forex Analysis & Reviews: AUD/JPY weakness might result in strong correction

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

After AUD/JPY had tested 96.93 on June 3, it formed a double top reversal pattern. Prior to that, the pair had broke below the uptrend trendline signalling that the uptrend might be over.

The Fibonacci levels applied to the trend-line breakout point shows that the pair failed to test even the nearest support after the breakout, which is 38.2% Fibs – S2 (94.46). This could mean that AUD/JPY is prepearung to test S2, S3 or S4.

It is clear that the pair was trading around 61.8% Fibs – R1 (95.50) for the past tree weeks. This time, this level could act as a final bouncing point before the pair will start to move lower. Consider selling AUD/JPY anywhere between the current level and R1. Although, any of the support levels starting from S2 could be a target. It seems reasonable to target the final fibonacci level, which is S4 (92.74). Only a break above R2 (96.17) could result in a potential triple top.

Support: 94.99, 94.46, 93.80, 92.74

Resistance: 95.52, 97.24

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.