AUDJPY:- Roll Over Could Be Imminent
AUDJPY:- The pair has fallen drastically since December and the Flash Crash only enhanced this by causing the pair to drop 1300+ pips to the downside at its peak low. Having now pulled back and recovered slightly we could see the pair ready to begin rolling over once again!
The Daily time frame has suggested that price is struggling to maintain any momentum and rejected the 79.00 regions last Friday, thus causing a steady decline. Thursdays Daily closure remains bearish with the 4-Hour retesting the major resistance of 78.00 if this level continues to be rejected we could see the pair drop and create a new L.L in the sequence
What would invalidate this set up is daily break and closure above the 78.20 price point, so as long as price remains capped below I will be watching for this to drop into 77.300 from an intra-day perspective.
Longer term we may see the pair complete a full retracement back to the 76.000 support before re-assessing the pair. If you look to trade the pair there is also a 4-hour head and shoulders formation with the neckline holding support at 77.650. If we can break this level take the height of the neckline and measure down for longer term projected targets.