AUDJPY on Thursday, 8th July 2021 came to its lowest lows from early Feburary 2021 near 81.30 major support which provided a strong reversal of 105 pips to the pair. A dark cloud cover can be very well observed which gave its closing this friday, breaking the nearest support turned resistance at 82.20. EMA 200 on the daily time frame along with the critical support at 81.30 was a tremendous opportunity for traders to position their entries onto the bullish momentum. The breaktout of head and shoulder structure at 83.00 already provided an indication by early June that the AUDJPY was preparing for a bearish correction which seems to have been completed on Thursday closing and confirmed by Fridays reversal. 

If we draw the fibb levels, extending it from its highest highs i.e 85.80 to its lowest lows i.e 73.15 on the daily time frame, the 61.8 fibb level seems to fit inn perfectly onto the zone of fridays reversal from 81.30 figure. This indicates that either AUDJPY is going to continue its bullish rally with a 5 wave structure again or we might find a bearish continuation from 83.70 where our EMA50 is at the moment. Lets discuss the current market scenario with bullish and bearish possibilities.

BULLISH & BEARISH CONDITIONS/ POSSIBILITIES : 

All in all seems to be more bullish on AUDJPY for the technicals under daily and H4 time frame suggests the pair to land itself near the breakout it made earlier this week at 83.70 level. The Dark Cloud cover and the current wave count suggests that the most obvious mark from the current perspective will be left in bullish tone in a sense that the RSI will be correcting itself by exiting from the over sold conditions while MACD is also supporting the fact by showing signs of weakness in terms of losing the bearish strength. The Fibb levels drawn from the concerned highs and lows on the chart are for short term technicals which are depicting the fact that 50% and 61.8fibb level will be met by AUDJPY - where our upper trend line and EMA50 is. After that we will update the following trend after analyzing the market price action, momentum and impuslive wave count to suggest if the market will move any higher or is going to provide a dovish impulse.  

Monthly and Weekly pivots, upper trend line, EMA50 and resistance at 83.70 are strong hindrances in AUDJPY further upside destination, we will be observing the market movement from the aforementioned angles to see if we can create opportunities for hawkish sentiments or are they going to become a reason for the pairs dive towards further lows. 

AUDJPY D1

Jul 10 2021