For two days we can see big decreases on AUDJPY and today they accelerated. Probably a lot of you were asking the same questions: what is going on? Is it the end of gains?
Looking at H4 time frame we can see that short term trend line was moved. It doesn’t mean end of it yet, because key factor is setup of highs and lows and it still looks bullish. However breaking the trend line show us that decreases will be continued and soon there will be test of key support set by two last lows. What’s more interesting, this support is at round 88.00 area what can increase its meaning.
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If we consider the biggest correction in the trend, the present one should reach mentioned support if it would be the same range. So it looks like the most reasonable plan is to wait for the end of correction and look for strong buy signal on support. If the support will fall, it will be equally with going over balance of earlier correction and it will be a sign of changing sentiment to bearish. Currently we still see bullish trend.
Looking at D1 chart, we shouldn’t be surprised that there is a break of bullish trend. In higher time frame we are currently in bearish trend and price reached to key resistance and bearish trend line.
