By: DailyForex.com
The AUD/JPY, like many of the Yen crosses has been hovering just above a major support level since last week, seemingly unable to go lower...or higher. The Monthly chart shows a solid support level for the AUD/JPY at 89.00 with last week’s low hitting 88.93 before pulling back. Since then the pair has danced back and forth between 89.90 and 92.00 with yesterday’s candle forming a possible Bullish Inverted Hang Man. Having closed below the daily 200 EMA 7 days ago, one might think that there is only one way to go...down. However, if yesterdays high is breached at 91.56 I would expect at least a rally back up to 93.30 where the Daily 200 EMA is sitting. Aclose above this key area will then possibly signal a further bullish run. But, a daily close below yesterday’s low, and especially Friday’s low, will possibly have the opposite effect and see the bears run the pair further, most likely 83.00 where especially heavy support lives.
Happy Trading!
