05:08:55 09-08-2022
AUD/JPY Price Analysis: Bulls moving in at critical support
- AUD/JPY bears are on the prowl but the bulls are moving in.
- The price action could be dictated by the reversion patterns across multi time frames.
AUD/JPY is correcting following the two-day rally. The following illustrates the prospects of a reversion into the 92.50 area based upon a reversion pattern that is taking shape on the daily candlesticks.
AUD/JPY daily chart
As illustrated above, we have a W-formation. The price is headed to the 23.6% Fibonacci level, which is not quite as significant as the cluster of the 38.2%, 50% mean reversion and the golden 61.8% below there:
AUD/JPY H1 chart
The hourly chart's M-formation is just as compelling:
The price would be expected to now move into the neckline which could act as a resistance that would encourage the bears in at a discount.