FOREX Chart Of The Day: AUDJPY Makes New Highs
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to go through AUD/JPY as the currency has broken into new highs.
We can see in this daily timeframe that the market had a resistance level, sitting around 76.80, and we can see that the market came into this area numerous times and broke away from it. Now, what happened was: we were looking for the potential for the market to change cycle, although we knew that the JP Yen was very, very weak. So it wasn’t on our list to really look for any trades and opportunities last week, and it was for a good reason: the market was weak. We were still, technically, making higher lows despite the market not really making any clear higher highs until now.
So now we’ve had two closes above this level. I’m looking for the market to retest it for a move to the upside.
The next zone of interest for me is around 79-60, and if I go to the monthly timeframe, you can see this is the reason why I’m looking around this area as previous support and resistance recently. So, I’m looking for the market to retest around 7960.
What we can do is: we can mark up this zone, just through here and say to ourselves: if price starts to pull back–obviously, it’s only Monday– so if the market starts pulling back into this zone and then forms bullish daily price action, we can then look for the long opportunity up into this 7960 area. With that daily price action, we may get a nice little four-hour pullback as well. So, what I can imagine seeing is: if the market continues this little uptrend at the moment, you can see that the four-hour is now breaking into new highs as well.
If the market starts making moves to the upside and we start getting that daily bearish candlestick, we’ll probably see a reversal in the four-hour trend. When the market hits the zone, then we’re looking for those reversals signals once again to look for long opportunities on AUD/JPY.
We can see that from the weekly as well – a nice clear close above these highs in here. It looks to me like the risk-on sentiment is going to continue in the market.
AUD/JPY is the perfect risk on a pair. So if the stock markets continue to climb, AUD/JPY will benefit from the back of that as well. Now that it’s broken into new highs, I only see an upside for this pair. So, have a look at this market on pullbacks, and if you do see any clear opportunities, look for those longs.
Thanks for watching this video update, and I’ll catch you in the next one.
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