- May 7, 2021
- Posted by: cabana-admin
- Category: forex trading, Market Insights
General overview: AUD/JPY prints mild gains in the Asian session. Risk-on tone lifts the sentiment around Aussie. The AUD/JPY is consolidating below the 85.0 mark in the Asian session. The cross trades in a very tight range, where it finds difficult to hold onto the gains. The pair finds its upside path in the market and sets for the buy zone. On the daily chart we can see that the trend is upside and still the path continuation is forming and Aussie recovers against its rival after the previous day’s disrupted move when China ended its Strategic Economic Dialogue indefinitely with Australia. However, the market digested the news on the back of strong economic recovery and global growth optimism. The investors are hopeful for the buying territory in the market. The pair makes the bullish trend further more. As the proper continuation cannot be formed as the bulls are also getting major pullback from the downside but still don’t loss hope.
Technical analysis: From the technical point of view we can say that market makes the buy position in the market .The bullish continuation is formed but on the hourly chart we can see that bull area also getting pullback from the market although still they manage to raise as the breakout can be found in the pair. We suggest our traders to do buy from dips in the market as the W pattern formed in the chart. The double top formation also seen in the market still we can say after the fall of level till 84.71 we can see again raise in the market as the trend is upward in the chart. On the 4 hourly chart market formed the swings from downside to upward as higher low swings are formed. We suggest traders to put buy position in market after level 85.00. The support will be 84.29 followed by 83.60 and resistance will be 85.50 followed by 86.00.
Trade idea : Traders will buy at level above 85.00 and target will be 85.60- 86.00 and stop loss will be 84.00.