AUD/JPY Candlesticks and Ichimoku Analysis

Weekly

• Last Candlesticks pattern: Doji



• Time of formation: 1 Aug 2016



• Trend bias: Down

Daily

• Last Candlesticks pattern: Shooting star



• Time of formation: 1 Nov 2016



• Trend bias: Sideways

Although aussie dropped quite sharply last week to 76.80, the pair found decent demand there and has rallied on risk appetite, suggesting the erratic rise from 72.50 low is still in progress and may extend further gain to 83.00, then 83.50, however, as this move is viewed as retracement of early downtrend, near term overbought condition should prevent sharp move beyond 84.00 and price should falter below 85.00, bring retreat later.

On the downside, whilst pullback to 81.50-60 cannot be ruled out, reckon downside would be limited to 80.50 and bring another rise to aforesaid upside targets. A daily close below 80.25 support would defer and risk weakness to the Kijun-Sen (now at 79.70) but a sustained breach below there is needed to signal top is formed, bring further fall to 78.90-00, however, still reckon downside would be limited to 78.00 and price should stay well above said last week’s low at 76.80, bring another rise later.

Recommendation: Buy at 80.50 for 83.00 with stop below 79.50.

 

On the weekly chart, aussie found renewed buying interest at 76.80 last week and has rallied again, the subsequent breach of previous resistance at 81.50-60 signals a temporary low has been formed at 72.50 and consolidation with mild upside bias is seen for retracement of recent downtrend, hence further gain to 83.50 and then towards 85.00 would be seen, however, reckon upside would be limited to 86.00 and resistance at 86.70 should remain intact due to near term overbought condition.

On the downside, although pullback to 81.40-50 cannot be ruled out, reckon this week’s low at 80.45 would limit downside and bring another rise. Below 80.00 would risk weakness to the Tenkan-Sen (now at 79.40), however, still reckon downside would be limited to 78.30-35 and price should stay above the Kijun-Sen (now at 77.56), bring another rebound. Only a drop below said support at 76.80 (last week’s low) would abort and signal the rebound from 72.50 has ended instead, bring another fall to previous support at 76.00.

AUD/JPY Candlesticks and Ichimoku Analysis