AUDJPY since beginning of June this year is moving north. Recently as a result of these increases market broke resistance at level 85.50. After few days, there was a short-term downward correction but price did not reach and test the mentioned resistance from above (now support already). In less than three days there was a strong demand response and market returned to bullish movement. As a result of continuation of this trend, we have now reached a critical resistance around 88.00, where we expect supply reaction.
If this level is rejected, we may expect at least a downward correction. Taking into account that resistance zone (now support) mentioned at the beginning of this analysis until today wasn’t re-tested and additionally coincides with 38.2% of the Fibonacci correction – there can be the target of declines.
