The AUDJPY price has found the previous highs and started to reject offering potential short ideas.
Watch the video to learn more…
The AUDJPY price has reached the previous week highs and started to decline, is this going to be the reversal we have been waiting for? Before going into the chart, why do we think the AUDJPY price is going to move lower? The strength meter is showing the Australian Dollar is begging to see some weakness and reverse from the extreme highs. Recently the RBA held interest rates at 0.1% which could disappoint investors as the RBA have been talking about hiking rates for some time without any follow through. In a previous week’s ahead analysis video we highlighted the correlation between the US10YR and USDJPY and that the bond yields had been finding resistance. This could cause the JPY to strengthen in the short term.
The chart shows that the price is rejecting the previous weekly swing highs currently with the 15 minute chart forming a common reversal pattern in the head and shoulders. If the price is going to reverse we would need to see the pattern complete and the price to form a new low. If this occurs we can then look for short trading ideas at the previous key resistance levels.
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