Potential Reversal for AUD/JPY
March 15th, 2010 Posted in Technical Analysis
The volatility of the AUD/JPY pair continues to be affected by the action in the forex market. The last three weeks has seen much bullish strength in the AUD/JPY pair. However, as I demonstrate 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.
• Below is the daily chart of AUD/JPY currency pair.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and MACD.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 4: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
AUD/JPY Daily Chart
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Tags: AUD, AUD/JPY, Australian Dollar, Forex, forex blog, JPY, MACD, RSI, Technical Analysis, yen
