After AUD/JPY had tested 96.93 on June 3, it formed a double top reversal pattern. Prior to that, the pair had broke
below the uptrend trendline signalling that the uptrend might be over.
The Fibonacci levels applied to
the trend-line breakout point shows that the pair failed to test even the nearest support
after the breakout, which is 38.2% Fibs – S2 (94.46). This could mean that
AUD/JPY is prepearung to test S2, S3 or S4.
It is clear that the pair was trading around 61.8% Fibs – R1 (95.50) for the past tree weeks. This time, this
level could act as a final bouncing point before the pair will start to move lower.
Consider selling AUD/JPY anywhere between the current level and R1. Although, any of the support levels starting from S2 could be a target. It seems reasonable
to target the final fibonacci level, which is S4 (92.74). Only a break above R2
(96.17) could result in a potential triple top.
Support: 94.99, 94.46, 93.80,
Resistance: 95.52, 97.24
The material has been provided by InstaForex Company – www.instaforex.com