AUDJPY has made a strong bullish piercing candlestick pattern in weekly with a reversal from 78.0 and closing at 80.40. The pair managed to provide us a closing above exponential moving average 200 in weekly but is still standing below exponential moving average 50. The good thing is AUDJPY gained the potential to revert more than half of the losses made past week by retracing from 38.2% fibb level and providing us a with a closing above 50% fibb retracement level at 80.40. Another important price action in terms of resistance turned support was 79.50 - that the pair broke above adapting to hawkish tone and is currently struggling with our upper trend line to the bearish channel; this zone can become a reason for minor bearish retest of the 50% fibb zone before continuing any higher towards 61.8% fibb retracement level i.e 81.03. According to the elliot wave count in daily, we are sure of the bearish count being completed of the 5 wave structure and the pair is now ready for strong bullish correction that we are expecting to end at 83.0

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

There are two possibilities of bullish or bearish projection of upcoming trend interms of an awaited breakout which seems to be favoring the hawks more. If AUDJPY started a bearish retrace from our upper trend line of the bearish channel and gave a closing below exponential moving average 50 and 79.20 price action in four hourly time frame, we would be able to notice the pair moving lower towards 78.05 again (chances to which are low). On the hawkish side if we could see AUDJPY breaking above exponential moving average 200 in daily i.e 81.49 then the pair wouldve entered the bullish trend, followed by a retest of the 61.8% fibb level and then continuation of the bigger bullish trend towards 84.26 and 85.20.  

AUDJPY

Aug 30 2021

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