AUD/JPY: Currently In Limbo, Awaiting Price To Push Lower
Hello traders, last Friday was very eventful after seeing the short call coming through on this pair followed by the third touch upside trendline bounce the same afternoon. Monday we gave this pair some breathing space to allow the noise within the market to settle and provide clearer price action as it was pretty responsive to the Brexit uncertainty which may have distorted true market direction.
Our weekly timeframe is currently forming a bullish candle but has been unable to remain above our moving averages which if holds will be added confluence to a bearish outlook.
Last Friday's trendline bounce saw us rise to the 78.700 key levels and yesterday saw us briefly peer above our descending trendline to form what could turn out to be a fake-out most visible on the H4 timeframe. We have an ascending trendline third touch and retest of the 78.700 zone; if this zone holds and ATL breaks it would be good confluence for further downside. However, a breakout retest continuation of this zone would strengthen confluence for an upside continuation.
Looking solely from a technical perspective due to the formation of lower-highs bias would steer towards the downside further. If price clears previous highs, this bias will be revisited. With the fundamental releases having a more avid effect on the markets recently, it would be wise to prepare for the unexpected.