AUDJPY TECHNICAL SHORT SETUP

The Japanese yen has started gaining strength, but for how long will it last?

AUDJPY DAILY

The immediate resistance level on the daily chart is @ MM3. Price broke through MPP after finding resistance @ 85.767, making a lower high. Immediate support on the daily chart is @ MM2 with the second support level @ MS1.

AUDJPY H4

Resistance is @ the 50.0% fib retracement, an area that price bounced off from two days ago. The last time we tested this resistance level was December 21st.

AUDJPY H1

Price has been making lower highs & lower lows since the 4th of January. An indication that Yen strength is finally kicking in. Resistance is found @ DR1 which is the 50.0% fib that predicts a 138.2 target. DM3 seems to be acting as our second level of resistance as price just bounced from there during Asia. I expect price to break out of the triangle to the downside making lower lows & lower highs as we are currently bearish. As a bear I look to short the next lower high.