Daily Price Action

AUDJPY Moves to Test New Resistance at 81.50


Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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Just like the USDJPY, the AUDJPY fell below a significant level last week. The 81.50 area was carved out as the 2017 low in April of last year.

The level also came under fire earlier this month on March 5 and again on the 19th and 21st.

Last Wednesday’s close below 81.50 was the same day the USDJPY lost the 105.50 handle. I don’t believe that to be a coincidence as the two levels have played critical roles in directing price action for both pairs.

You may also be aware that the Japanese yen pairs often move in tandem, particularly during risk-off periods. We saw this type of risk-averse sentiment kick in late last week, but things have cooled a bit so far this week.

Whether or not today is a temporary setback for sellers is yet to be seen. However, as long as levels like 81.50 on the AUDJPY and 105.50 on the USDJPY hold on a daily closing basis (New York 5 pm EST), I will stay bearish.

I haven’t entered here yet as I’m waiting to see what happens during the retest of 81.50 as new resistance. I won’t consider a position without first seeing some bearish price action.

If I do decide to short the AUDJPY, the monthly chart shows a trend line that would serve as a profit target.

AUDJPY monthly trend line support

My reason for waiting to enter is due to the volatile conditions of late combined with the distance between today’s price and the 10 and 20 daily EMAs (see chart below). The latter suggests that some consolidation is in order before the next push lower begins.

Alternatively, a daily close at 5 pm EST back above 81.50 would negate the bearish outlook and re-expose the 83.30 area.

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AUDJPY daily horizontal levels

Leave a Comment:

liam says

Hi ive been following you for sometime now. Do the new york closing times at 5pm, close at 10pm london time?

    Justin Bennett says

    Yes, you’re five hours ahead of us here on the East Coast of the U.S.

Felino+Ignacio says

Thank’s Justin..Great Tip..!

Darius says

yea, jpy pairs go up – NZDJPY went up huge at 19:46 UTC today

    Roy says

    looking for some bearish price action in the coming days to go short in the downtrend.

jake says

im using GMT+3 now at what time would that be on 5pm ny est?

    Samuel says

    Im using the same. This is midnight, now after DST time adjustment

Kenny says

Nice technical analysis.
but u would consider a swing buy on AUDJPY if it holds the 81.50 area.

same setuo for USDJPY, it broke 105.00 and a retest on that area indicate a long buy on UJ.

looking at fumdamental analysis, the yen has been so strong quite some weeks across major pairs.
time for consolidatoin to set in.

sam says

Hi! You are a good trader. I am learning and growing progressively.

Private Brand says

Hi Justin
thanks for your analysis this really helps in making correct decisions and following the trend right through the end…..you a Guru

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