Technical Moves On AUD/JPY
Admirals | Apr 23, 2013 07:43AM ET
Since April 11, the AUD/JPY has been on a downward trend in accordance with the global sentiment of strengthening the Japanese currency. The past week was the correction of that movement that could have been easily named a rising wedge (red lines). The bullish correction stopped exactly at the 61.8 Fibonacci retracement. Sellers took control again yesterday when they managed to break the wedge support. After reaching another Fibonacci level at 38.2, the price went back to the wedge support to check the importance of this sell signal. The sell signal was confirmed by another downswing that happened early last night.
The European session started with the price next to recent lows. Reaching another Fibonacci level (23.6) is the most likely scenario, and there is a probability that this won’t be the end of the bearish movement that started in the middle of April.
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