AUD/JPY:- A Break And Retest Of 82.00 Could Define The Week
AUD/JPY:- We can see that the currency pair has been trapped within a range of 13-14 days, before Friday's price action saw a surge back towards 82.00. We are expecting now for bullish momentum to occur, with a directional bias firmly to the upside having now rejected the lows on 3 consecutive occasions on the higher timeframe. The weekly candlesticks suggest a huge amount of buying pressure is accumulating below the 82.00 region and we could look to revisit previous resistance levels above. The first level I would keep in mind is 83.50 and then 84.00 as monthly resistance, however, we can clearly see that price has been more respectful of 84.50 and could account for an additional 50 pip push beyond 84.00.
What I would ideally like to to see is a smooth retest of the major 82.00 level before going higher to confirm a breakout, retest continuation confirmation and therefore I will concentrate on buying upon and forms of deeper retests.
With no fundamentals directly affecting either the Australian Dollar or the Japenese Yen, we could be in for a clean technical week with a strong higher time frame bias.