AUDJPY Price Analysis – June 07
A bottom reversal candle pattern called Piercing line formed on June 03; this may trigger the bullish momentum and the price may rally towards $77 level.
Supply levels: $75, $77, $79
Demand levels: $73, $70. $$66
AUDJPY Long-term trend: Bearish
On the long-term outlook, AUDJPY maintains its bearish trend. AUDJPY price has been consolidating at the $75 level for more than two weeks. On May 15, AUDJPY found support at $75 level. The level holds the price and the Bears could not penetrate the level. The Bulls’ pressure became weak, unable to push up the price. Consolidation continues until the Bulls or the Bears gain enough momentum to make the currency pair rally.
The gap between the currency pair and the two EMAs is getting closer; this indicates that the bearish momentum is getting weaker, though the pair is trading below the 21 periods EMA and 50 periods EMA. Nevertheless, the Moving Average Convergence Divergence period 12 with its histogram is above zero levels and the signal lines pointing up to indicate a buy signal. A bottom reversal candle pattern called Piercing line formed on June 03; this may trigger the bullish momentum and the price may rally towards $77 level.
AUDJPY medium-term Trend: Ranging
AUDJPY is ranging on the medium-term outlook. On the 4-hour chart, the AUDJPY price started sideways movement on May 15. The currency pair is ranging on and around the $75 level. On May 30, the Bears broke down the $75 level with the formation of the strong bearish candle and the price moved down towards $73 level. Along the way, a piercing line candle pattern emerged and the price reversed to the consolidation phase at $75 level.
The 21 period EMA and 50 periods EMAs are closely touching each other and the currency pair hovering over the two EMAs; this indicates that consolidation is ongoing in the AUDJPY market.
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