By: Colin Jessup
The AUD/JPY has been Bullish since Friday when it hit a 2 week low at 85.16 and with a close today above both the Daily & Weekly Pivot at roughly 86.80 in Monday's trading, we could see a test of the Daily R1 at 87.82 today. There is a potential head & shoulders forming on the daily chart so a close above the 10 month high at 88.62 will act as confirmation that the Bullish trend is resuming for the longer term. If price turns bearish around 87.80 we will most likely pull back to around 86.75 with a close below this level possibly indicating further bearish direction. Support levels below the current price of 87.15 at 6am London Time, are 86.98, 86.54, and 85.70 with Resistance levels above at 87.82 and 88.25. The next major resistance level if we break the 10 month high will be 89.00. Both the daily and 4-hour charts are trading above the Daily Moving Averages, possibly confirming the Bullish continuation.
Happy Trading!