According to this week’s JPY COT report we can see that the Yen is stacking up even more long contract positions. We can expect it to hold a strong position among most of the pairs surely till the end of the month.
AUDJPY has been in an uptrend since the false breakout in March 2020 where it reached the 60.000 mark near the monthly critical area. Now it has passed several critical zones without doing any correction and from a technical perspective it is a good time to do so before moving up towards the 85.000 area.
The following structures give us a clue of how it will happen:
1. A formation of a reverse head and shoulders can be seen on the weekly timeframe.
2. A “M” formation can be seen on the 4H timeframe.
On the 4H timeframe we are in a closed triangle structure which is coming to its end. After the strong close on Friday we can expect a second top in the daily critical area near 76.500. Afterwards the rejection will take place.
Our target will be the 70.000 mark.
Happy Traidng!
AUDJPY has been in an uptrend since the false breakout in March 2020 where it reached the 60.000 mark near the monthly critical area. Now it has passed several critical zones without doing any correction and from a technical perspective it is a good time to do so before moving up towards the 85.000 area.
The following structures give us a clue of how it will happen:
1. A formation of a reverse head and shoulders can be seen on the weekly timeframe.
2. A “M” formation can be seen on the 4H timeframe.
On the 4H timeframe we are in a closed triangle structure which is coming to its end. After the strong close on Friday we can expect a second top in the daily critical area near 76.500. Afterwards the rejection will take place.
Our target will be the 70.000 mark.
Happy Traidng!