AUD/JPY Candlesticks and Ichimoku Analysis

Weekly 


   

•    Last Candlesticks pattern: Shooting star 
   
   

•    Time of formation: 13 Mar 2017 
   
   

•    Trend bias: Down



Daily



   

•    Last Candlesticks pattern: Bearish engulfing pattern 
   
   

•    Time of formation: 16 Feb 2017 
   
   

•    Trend bias: Near term down




 

Although the Australian dollar did fall to 81.80 last week, as the pair has rebounded after failing to penetrate this support, suggesting further consolidation would be seen, however, reckon upside would be limited to 83.85-90 and bring another decline later, below said support at 81.80 would signal the rebound from 81.50 has ended, bring retest of this level first. A drop below this level would extend recent decline from 88.15 top to support at 81.10-15, however, near term oversold condition should limit downside and reckon 80.00 psychological support would hold from here, bring rebound later.

On the upside, expect recovery to be limited to the lower Kumo (now at 83.45) and bring another decline. Above 83.85-90 would risk another bounce towards indicated resistance at 84.55 but only a break above this level would abort and suggest low has been formed instead, risk a stronger rebound to 85.00-10, however, another indicated previous resistance at 85.75 should remain intact, bring another decline later. 


Recommendation: Hold short entered at 83.65 for 81.65 with stop above 84.00.

On the weekly chart, as aussie has rebounded after failing to penetrate support at 81.80 and a white candlestick was formed, suggesting further consolidation above recent low at 81.50 would be seen, however, reckon upside would be limited to 83.40-50 and 83.85-90 should hold, bring another decline later, below 81.80 would bring retest of 81.50. A drop below this level would extend the fall from 88.15 top to support at 81.10-15, a weekly close below there would retain bearishness and suggest the rise from 72.50 has ended, then further fall to 80.50 and possibly psychological support at 80.00 would follow.

On the upside, expect recovery to be limited to 83.40-50 and bring another decline. Only a weekly close above resistance at 84.55 would suggest low is formed instead, bring a stronger rebound to 85.00, then towards resistance at 85.75 but only break there would abort and signal low is formed instead, bring further subsequent gain to 86.00 and then 86.50-60, however, price should falter below resistance at 87.50.