Currently, AUD/JPY is still trending up as no lower lows have
been confirmed. The pair has been ranging since it reached a
high of 97.26 on May 14. The sideways corridor boundaries are between 95.00
The Fibonacci, applied to the upper trendline breakout point
showed a clear rejection of the 38.2% support level S2 (94.46) that was followed
by rejection of the 50% support level S1 (94.99). At the same time, the pair
rejected the lower uptrend trendline which looks like a confirmation of the
rate to move higher.
While the pair is trading between R1 (95.52) and S1 (94.99),
consider buying on pullbacks, targeting the area aroubd 97.00, where the double top is spotted
and which is a psychological resistance. A break below S2 could only extend the
consolidation but should not reverse the trend down.
Support: 94.99, 94.46
Resistance: 95.52, 96.18, 97.00
The material has been provided by InstaForex Company – www.instaforex.com