Australian Dollar versus Japanese Yen has once again went in our projected direction with a very soothing ride of almost 190 pips from 80.19 to 82.05 based on the bullish breakout from our upper trend line to the bearish channel and 80.0 price action. AUDJPY took a bearish retest of our upper trend line to the bearish channel - avoiding to enter the bearish trend again, it provided us with a closing above 80.0 and also 50% fibb retracement level which confirmed 61.8% fibb as its next targeted destination at 81.10. In four hourly time frame the pair made a double top like structure and also the relative strength index floating above 70 had already created overbough conditions which has not corrected itself by adapting to a dovish stance towards exponential moving average 200 and 50 in four hourly time frame. From the current market structure - in accordance to elliot wave pattern; AUDJPY seems to have completed 5 wave bullish count in four hourly chart while in daily somewhat completing the bullish correction of higher degree, indicating neutral sentiments and waiting for an impulsive closing at either end of the 61.8% fibb retracement zone. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILTIES :

The possibilities and conditions of bullish or bearish projections of upcoming trend is dependent on an impulsive breakout below exponential moving average 50 in daily and a hawkish reversal from the current market price in short. 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

farhan fazal

Sep 09 2021