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21 Oct 2013
AUD/JPY dip buying persists, 20-EMA H4 key
FXstreet.com (Barcelona) - AUD/JPY continues its bullish course after 94.30 technical breakout last Friday, recording a new 5-month and a half high, and opening the doors for further gains this week.
The trading environment in the AUD/JPY, if perceived from the H4 chart, indicates a non-volatile uptrend still in place, conditions which should warrant a friendly context to add longs through fresh breakouts and/or shallow dip buying.
From the same H4 chart, one can clearly see a pattern built between the price and its 20-ema, in which over the ongoing series of higher highs initiated last Oct 10, every time the indicator was tested (5x), a rejection has been observed, making the bullish reversal levels quite predictable for those using such mean measure as the point of equilibrium to keep buying the pair.
During the current Asian session, the AUD/JPY is consolidating near trend highs, with any retracement below 94.45/50 exposing 94.20/30, area where the 20-ema on the 4 hour charts is crossing. Buyers should look for potential price signals to go long around such periphery. Below, the next key support should be taken at 93.60 (Sept 10 peak). Only a close below on a daily basis would negate the very constructive bias for the pair this week.
The trading environment in the AUD/JPY, if perceived from the H4 chart, indicates a non-volatile uptrend still in place, conditions which should warrant a friendly context to add longs through fresh breakouts and/or shallow dip buying.
From the same H4 chart, one can clearly see a pattern built between the price and its 20-ema, in which over the ongoing series of higher highs initiated last Oct 10, every time the indicator was tested (5x), a rejection has been observed, making the bullish reversal levels quite predictable for those using such mean measure as the point of equilibrium to keep buying the pair.
During the current Asian session, the AUD/JPY is consolidating near trend highs, with any retracement below 94.45/50 exposing 94.20/30, area where the 20-ema on the 4 hour charts is crossing. Buyers should look for potential price signals to go long around such periphery. Below, the next key support should be taken at 93.60 (Sept 10 peak). Only a close below on a daily basis would negate the very constructive bias for the pair this week.