AUD/JPY: Will Bulls Take Back Control Before Pushing Back Lower
Hello all, hope we've had a productive week so far.
Our monthly and weekly timeframes are still painting a negative picture for this pair. This month gave us the follow through craved for below the 77.600 support region and this week's price action has followed through from the gap down which initiated last weeks price action. Moving averages on both timeframes are crossed over to the downside with price deviating significantly from their proximity.
On the daily, we look like we have reached a temporary bottom last achieved in the first few days of January. With a strong downside rally in play since mid-April with no substantial buying pressure to counter-act, should price sustain above this support level, we are primed to see a bullish retracement which could take us back to the two highlighted resistance regions (77.550 and 77.800). The mid to long term bias still remains bearish until we see a break of structure to indicate a trend reversal. More specifically, we would be looking to a break of the most significant lower-high located at 80.700.
(Trading the counter-trend is a skill that must be refined and only explored if there is a good risk: reward profile which could vary depending on your trading style.)
What are your thoughts on counter-trend trading? Comment below