The AUDJPY in the second half of last month bounced dynamically from key support at 78.70. This resulted in the establishment of a higher high, and moreover, for several weeks, the quotations remained above the average EMA 10/20, which indicates the advantage of the demand side.
On the other hand, after switching to a 4-hour chart, we see a strong upward movement to the level of 83.03 and a subsequent correction, which took the form of a channel/flag. The flag is most often considered as a continuation formation. With the above scenario, the continuation of the upward movement can be expected after breaking the upper limit of the flag’s formation. Then the high on 83.03 will also be unveiled again.The next goals for increases are concentrated in the area covering the tops of swing from the period March – July this year. This zone is in the range 83.92 – 84.52.
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