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Daily Forex Technicals |
Written by FXTimes |
Oct 20 11 12:49 GMT
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AUD/JPY Technicals: Failed Head and Shoulder Turned into Descending Triangle
The 1H AUD/JPY chart shows a sideways market. A large head and shoulder scenario is no longer valid as the market failed to break the neckline at 77.60. During the Thursday Asian-European session, the market was supported even higher, near 77.70, respecting the 200-period simple moving average. We have a projected trendline that acts as resistance near 79.00. A break above this, with the RSI pushing back above 60, reflects range-bound momentum.
Then the next resistance is the pivot near 79.50. The the psychological resistance at 80.00 is near the October high, and contains the short-term bullish scenario. We have pivots around 80.50, and the very significant resistance near 82.00. We’ll monitor these targets if the market breaks 80 and the 80.27 high.
The 4H chart shows AUD/JPY above the 200 SMA, and the RSI above 40. Signs of bullish stance. The consolidation is looking like an ascending triangle. No doubt a break below 77.60 will be a significant sign for a corrective decline toward 76.70, or to 76.16, 50% retracement. However the chart looks to have a bullish bias.
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