What next AUDJPY?

Good evening ladies and gentlemen

I hope you all had a wonderful day in the market. We were spoilt with some great weather today. I hope you were also spoit with a nice handful of pips.

So lets see how the AUDJPY has faired so far today. Yesterday we were treated to a move of 300+ bearish pips. Price then continued to drop another further before reversing. As I had mentioned yesterday, if price continues to drop it may find resistance at the first S line. However, price crashed through it but found support at the next S level! This could also be seen as a S and R zone. This highlights how key it is to draw in your S and R line!

Below I have the 4 hour chart and we see that between 12am and 4am this morning price dropped 200 pips before reversing at the start of the UK open. Price moved bullish up an aggressive Fib Breather level did a massive long wicked doji and has since come back down again. This Fib Breather level is also clustered with the VI on the 1 hour chart.

So next we could see a retest of the S line which is clustered with the VI. Additionally MACD is doing lower lows but is still someway off the midline. RSI is also close to creeing over into the OS zone which may mean further move south before another reversal. However, if the VI is broken on the 4 hour we have a bit of room for price to drop till it meets the VI on the daily which could mean easy profits! The bigger picture though is that Big brother is bullish which may ultimately have the final say. We already have the formation of a chart pattern, a DT, at the S line! The third time may prove significant!

As always all we can do is wait and see what the market presents before us and thus act accordingly. On this time frame we appear to be in a period of oscilation so patience maybe key!!

Alright Rich! 60 miles on the bike! You entering the Superman competition? Good going mate!!

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari