AUD/JPY Reaches Level 77.00, Sellers Threaten to Short

Key Resistance Levels: 74.00, 76.00, 78.00
Key Support Levels: 58.00, 60.00, 62.00

AUD/JPY Price Long-term Trend: Bullish
The AUD/JPY pair is currently trading in a sideways move between levels 77.50 and 72.50. Since June the resistance at level 77.50 is yet to be broken. Presently, the pair is facing resistance at level 77.00. The pair may resume a downward move.

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The pair has risen to level 65 of the Relative Strength Index period 14. The price is in the uptrend zone and above the centerline 50.

AUD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in a bullish trend. AUD/JPY rebounded above level 75.60 and rallied to level 77.00. A red candle body tested the 78.6 % Fibonacci retracement level. The pair will reach the 1.272 Fibonacci retracement level. Thereafter, the pair will rise to 78.6 % retracement level where it originated. The market has reached its target but we await its reversal.

4-hour Chart Indicators Reading
The AUD/JPY pair is currently above 80% range of the daily stochastic. It indicates a bullish momentum but price has reached the overbought region. The implication is that sellers are likely to emerge to push prices down.


General Outlook for AUD/JPY
The AUD/JPY pair has risen to level 77.0. The pair are said to have reached the overbought region of the market. According to the Fibonacci tool when price reaches 1.272, the market will reverse to 78.6% Fibonacci retraement level. Traders should initiate short orders.


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