AUDJPY Up 1 Pips Over Past Hour, Price Base in Formation Over Past 14 Days; Eyes 20 Day Average

Hourly Update

(Last Updated September 14, 2020 23:13 GMT)

Currently, AUDJPY’s rate is up 60 pips (0.01%) from the hour prior. This move is a reversal from the hour prior, which saw price move down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on AUDJPY. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

AUDJPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of AUDJPY continues; to start today, it came in at a price of 77.287, up 28 pips (0.36%) since the day prior. Relative to other instruments in the Forex asset class, AUDJPY ranked 3rd the day prior in terms of percentage price change. Let’s take a look at price chart of AUDJPY.

AUDJPY

AUDJPY Technical Analysis

Notably, AUDJPY is now close to its 20 and 50 day moving averages, which may act as price barrier for the asset. Rangebound traders may wish to note that AUDJPY is getting close to its upper bollinger band, which, when coupled with the lack of trend on a 14 day timeframe, may be an opportunity for short sellers. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 30 days AUDJPY’s price has gone up 15 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDJPY, with 20 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 2.5, which is bullish. As for the rationale, technical traders seem to be citing the appearance of head and shoulders technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

+ Month : Decrease+ Week : Increase meet Trend Line Month+ Day : Increase meet Trend Line Month+ 4h : decrease + 1h : close below Pivot Point- Fibonacci meet 0.236


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram