If you take a look at a recent chart for the AUD/JPY, you will absolutely know that the pair is in the process of forming a correction wave after it had been rising since last June till November 2016 at the prices 88.03; in the last two months the pair has been moving in a downward direction and is now trading around 83.20.
The pair is currently trading inside a down price channel ahead of the next support level at 82.35 after it broke the first correction percentage 23.6% Fibonacci. We predict it will go down to 50% and 61.8% Fibo. The Stochastic indicator is crossing now to give us a sell signal - we can take sell positions once we see the stochastic sign.
The Next Few Days
From this analysis we can sell the AUD/JPY Pair around the current levels after we see the stochastic sign. We should keep the sell position as long as the pair is still trading below the moving average 50 on a 4-hour chart. We need to keep our first target at 82.35 and the second one at 81.26 around the upside trend line. However, if the pair breaks the SMA up we can close the sell position and take a buy one at 83.90 and keep our target at 85.10.
We have to be careful in the upcoming days regarding hot news like the Unemployment Rate from Australia next Thursday.
