AUDJPY Weekly Technical Outlook
The bullish move seen on the weekly time frame in the AUDJPY market since the beginning of April 2019 declined last week with the printing of an indecision candlestick, an inside candlestick to the bullish candlestick printed two weeks ago. Price action is presently located around a horizontal resistance and we may have to wait for clarity of price action this week. However, a descending trendline (blue) traceable to November 2014 has been acting as a diagonal resistance for quite a while and is still in play; apparently, the longer-term technical bias favours bears.
Until last week when price action went sideways, the technicals on the daily time frame was bullish. Should bulls follow-through on the indecision candlestick printed on Friday, it would likely result in maintenance of the sideways. Any bullish drive is likely to be hindered by the horizontal resistance around the 81.090 area. However, should bulls clear that area, the 82.010 area is a more significant horizontal resistance. Alternatively, we may see a retracement to a value area, perhaps breaking below the ascending trendline (magenta) from recent lows. Besides, an outer ascending trendline (red) traceable to January 2019 may be the next significant diagonal support should the inner ascending trendline (magenta) be breached southwards. But a breakdown of the 78.600 area, representing the monthly pivot, on a daily closing basis is likely to lead to a strong bearish continuation.
The H4 time frame shows price action struggling for a bullish operation as a horizontal resistance in the 80.500 area is being tackled. Looking left, it is apparent that the southward move is potentially the impulsive trend and we are in a corrective phase at the moment. The ‘wicky’ tops on the recently formed candlesticks indicate a weakness of bullish momentum.
I may be wrong. Trade safe and prosper.