AUD/JPY Approaching Resistance, Prepare For A Reversal

AUD/JPY is approaching its resistance at 84.47 (100% Fibonacci extension, 61.8% Fibonacci extension, 50% Fibonacci retracement, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect the price to reverse and fall to its support at 81.30 (horizontal swing low support). We have to be cautious of the intermediate support at 82.75 (50% Fibonacci retracement, horizontal overlap support).

Stochastic (55, 5, 3) is approaching its resistance at 98% where a corresponding reversal is expected. We have also identified a bearish divergence with the price which contributes to our bearish bias.

Sell below 84.47. Stop loss at 85.51. Take profit at 81.30.


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