The AUDJPY pair now trades at the lower support area.
Responsible selling may be considered in key areas.
AUDJPY Weekly Price Analysis – August 22
The bearish trend may continue provided the $78.244 support level holds.
Resistance levels: $85.270, $85.280 $85.290
Support levels: $78.250, $78.240, $78.230
AUDJPY Long-term trend: BearishAUDJPY still remains in a bearish zone in its long-term outlook. After retesting the support level of $79.827 by the bears on the 18th of August in the support area and also breaking the support line had sustained the currency pair to have a strong support zone.
The bears made a progressive movement to the south with a touch at the support line and stayed below it at $78.244 in the support area as the low attained by the pair on the 19th of August.
A bullish doji candle at $78.353 opens today’s daily chart in the resistance area, an indication of a trend reversal.
The price of AUDJPY is up at $78.632 in the resistance area below the EMAs, this suggests that the sellers are in control of the market.
Hence, the stochastic signal pointing up at around level 8% in the oversold area suggests that the momentum in the price of AUDJPY may likely encounter a change in trend in the days ahead in the long term.
AUDJPY Medium-term trend: BearishOn the medium-term outlook, the momentum is in a downward trend. The sustained bearish pressure pushed the pair down to $78.353 in the support area during yesterday’s session.
The journey downwards continues as the 4-hourly chart opens today at $78.579 in the support area.
Activities from the sellers further drop the price down to $77.895 in the support area.
Bulls stage a return and push the price of AUDJPY up to $78.534 in the resistance area.
Bears took over and drop the price of the Yen down to $78.312 below the two EMAs in the support area; this implies that the momentum in the price of AUDJPY is in a downtrend.
The stochastic signal pointing up at around level 20% in the oversold region, suggests that the pair may likely encounter a trend reversal in the nearby days in the medium-term.
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