In our last technical analysis report about the AUD/JPY pair we recommended our followers to sell the pair at 83.20 on May 23 after it broke the price channel downward. We kept our first target at 82.20, which means we made 100 pips as a profit.
Today we return back to take another position on the pair because it’s trading now at an important resistance area where the pair trades close to the downside trend line again. It has not finished the correction wave yet.
Last Friday we noticed a bearish pin bar at the trend line and then a down candle which means the pair will resume its downward direction again. It has already declined but then it returned back after touching the SMA. We expect it to decline further and to break the moving average. The Stochastic indicator is trading at 80 levels now and we are waiting for the two lines cutting across to give us the sell signal.
The Next Few Days
After we saw the signals still in the same direction, as well as the pin bar, we can sell the pair at the current levels at 82.94. We have news from Australia this week which is expected to be worse than previously, so we will keep our first target at 82.16 and the second one at 81.50.
This week the markets has much hot news like the Unemployment Rate from Australia and the Policy Rate from the Bank of Japan.
