AUDJPY Surges Upward Out of Triangle Formation

AUDJPY Analysis – Price Surges Upward After Tapering for Weeks

AUDJPY surges upward out of its triangle formation. The price has been narrowing within the triangle for several weeks and was bound to break outward either upward or downward. The 80.260 key level helped to trap price upward and, thereafter, price surges upward. The market, therefore, bypassed a lot of key levels as it surges upward to reach the 85.830 supply level. Just like it happened earlier in the year, on May 10th, the price was repelled. The market is also repelled and is now dropping.

AUDJPY Key Levels

Supply Levels: 85.830, 87.430, 89.020
Demand Levels: 79.140, 78.850, 80.260

AUDJPY Long Term Trend: Bullish

The pattern of movement of AUDJPY since the beginning of the year can generally be described as wavy. The market is confined to the space between the 85.830 supply line and the 78.850 demand level. Price first climbed towards the 85.830 supply line on the 18th of March, but it didn’t attempt to break through as it moved in a sideways movement till the 17th of June, at which time there was an accompanying decrease in volatility as shown by the ATR (Average True Range) indicator.

Price movement eventually dipped gradually down a slope but the market was halted at 78.140 after three months of continuous plunging. The market immediately beat a retreat upward. By the means of a symmetric triangle, the price eventually surges upward directly back to 85.830. The ATR (Average True Range) indicator shows that there was a geometric increase in volatility as price surges upward. However, predictably, the market has failed at 85.830 again as the market is seen dropping.

AUDJPY Short Term Trend: Bullish

On the 4-hour chart, the market can be seen retracing at key levels before price surges further upward. The market is in a reversal already after price aligned perfectly with the 78.60% Fibonacci ratio drawn on the latest price trend. A bullish engulfment candle comes up immediately after, which is a sign of reversal. Furthermore, market volatility has experienced only a little drop and buyers could still break past the 85.830 resistance. Alternatively, price could fall back into consolidation, with either 84.220 or 83.110 acting as support.

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