by Himanshu Jain
Last week AUD/JPY downward move from 82.85 continued till 80.52. The currency pair found strong support there. This support came little above the 80.45 support mentioned by us during the last weekend (quoted above). This support level was near daily Ichimoku cloud’s Kijun-sen support level as well as 22-day EMA support level. AUD/JPY jumped up from there and went as high as 82.62 before closing for the week at 81.51.
Considering the price action and the recent support levels, we expect some more upward gains, once a break over 82.85 takes place. On the upside, a break over the recent 82.85 (also Sep 1st, 2011’s resistance level as mentioned above), should bring further gains for aud/jpy towards the recent high of 83.95 (October 30th, 2011). This level should bring a strong resistance and a break over that will open the door for a move towards the resistance of psychological 85.00 level first. Any firm break over 85.00 should target for 86.20.
The above outlook will stay good if there is no downward break below 81.30/81.25 and the support over this level holds. Any strong break of this support will start making us neutral for AUDJPY for the coming days. This kind of break will indicate the break below the recent support as well as the support of 22-day EMA. In such case we can expect some more downward correction towards 80.30/80.25 of the 55-day EMA and also the upper edge support of AUDJPY daily Ichimoku cloud.
You may also check the weekly audjpy forecast and daily aud/jpy analysis at ForexAbode. You may also check the changing currency correlation values for the major currency pairs.
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