AUD/JPY Price Analysis: Daily resistance continues to hold

AUD/JPY bears are defending a critical daily resistance.
There are bearish prospects for a fresh low and deeper test of weekly support.

As per prior analysis, AUD/JPY Price Analysis: Bulls come up for air into the bear's lair, the market is stalling in the daily resistance and on continued failures, the bears will be in for another go at the weekly support:

Weekly chart

The weekly support could be a tough nut to crack and a breakeven target will be an important feature of the trading plan.

Daily chart

The price is meeting the prior daily lows and struggling to make further headway, and so long as the resistance holds, a downside extension could be on the cards:

4-hour chart

The price will need to break below support for bears to engage with a higher conviction.

As explained, the weekly support is menacing so bears would be prudent to seek out a breakeven opportunity at the earliest opportunity as soon as a new bearish structure is formed on the way down.

For example, as illustrated in the 4-hour chart above, a close below the second layer of the old resistance structure near 80.70 would be an appropriate time to trailing the stop loss.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.