AUDJPY for long time moves up. In the beginning of the week market reached target around 86.50. For three days it is oscillating around this resistance and taking into account that during recent increases market has not performed any deeper correction in the near future we can expect emergence of bears. Potential declines could reach even in the areaof support zone coinciding with level of 38.2% Fibonacci correction of the ongoing from June growth.
Looking on H1 chart we can see that for the market to change attitude to bearish we would have first to overcome local support around level of 86.08.
On the currency pair CADJPY situation looks similar due to correlation associated with the Japanese yen and the fact that in both cases JPY is the quoted currency.
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The market also on Monday reached resistance area around 88.70 level. It is true that the level has not yet been touched but we have seen a strong reaction of bears and Monday’s candle on the daily chart formed bearish pin-bar.
When we look at the H1 chart we can see that for the market to change attitude to bearish would have first to overcome local support around the level of 87.41.