FOREX Chart Of The Day: AUDJPY Reversal Setup

The AUDJPY trend could reverse if the market moves into a risk on market with the stock markets making new highs.

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AUD/JPY- Weekly Chart

The weekly timeframe on AUDJPY shows the price forming a slight rejection of the previous weekly highs, this could be a sign of a reversal setup. If the market remains risk on and the stock markets find new highs we should see risk currencies like the Australian dollar benefit. 

If the stock market begins to drop again we could see this level broken and the price move lower however the market is currently bullish.

AUD/JPY- 4hr Chart

The key to trading cross pairs is to identify the majors and the trends on the relevant pairs. For instance, for the price of AUDJPY to move higher, we need AUDUSD to rally and USDJPY to rally. This usually happens in a risk on market. When these conditions are met we can look for long opportunities.

The 4hr time frame is currently showing a potential uptrend and if the price was to make a new high we could assume the risk on market will continue as the daily would have made a higher low and we can look for long opportunities on a retest of support.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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