AUD/JPY on Course for Bearish Correction
December 11th, 2009 Posted in Technical Analysis
Name: Anton Eljwizat
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The volatile of the AUD/JPY pair continues to be affected by the volatile forex market. The last week has seen a lot of bullish strength in the AUD/JPY pair. However, as I demonstrated below, it seems that the pair’s bullish run may have run out of steam, and a bearish correction could be underway soon. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.
• The chart below is the AUD/JPY 4-hour chart by ForexYard.
• The technical indicators that are used are the Relative Strength Index (RSI), and Slow Stochastic.
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• The volatile upward movement which occurred prior to this downward correction has generated these indicators, and there appears to be room for this correction to continue.
AUD/JPY 4-Hour Chart
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Tags: AUD, AUD/JPY, dollar, Forex, forex blog, JPY, RSI, Slow Stochastic, Technical Analysis, yen
