FX forecast / AUD/JPY / Our expectations
Long-term consolidation, the price broke below the horizontal support of the channel and now is making a test. Middle-term downward trend, the price is making lower tops. Price action signal: Pir bar at levels of diagonal and horizontal resistances. The tail of the pin bar is large which indicates that the bulls do not have power to continue with the ascending movement. Fake break out of FiBo 38.2 and close below the level - negative signal. Technical indicator: CCI(50) - Below the base level 0 - as long as the pice remain below the level. the negative sentiment is still on track. The price is below SMA 200/50 - negative signal. The current candle is making correction of th ePin bar, which gives us better price for positioning.
Alternative scenario: If the price breaks above the zone of resistance and return in the consolidation, the negative scenario will be dismissed.
Trader Bozhidar Arabadzhiev
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