EUR/JPY reversed down at the 200-week MA around 124.45. The pair became really overbought and formed a reversal pattern on the D1.
AUD/JPY needs to decide
SELL 73.25; TP1 72.80; TP2 72.20; SL 73.40
BUY 74.00; TP 74.45; SL 73.85
AUD/JPY has reached the support line connecting August and October lows in the 73.30 area. Now the pair will have to decide, which trend it’s going to continue: the long-term downtrend or a shorter-term uptrend. In the first case, the initial targets will lie at 72.80 and 72.15 (50% and 61.8% of the August-November advance). If the support holds and the price returns above the 50- and 100-day MAs, a break above 73.95 will allow it to rise to 74.50 (September highs).
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
There’s still scope EUR/JPY to rise towards the 118.70/119.85 area, where a reversal to the downside should take place.
Risk-on pushed stocks and riskier currencies upward.
It’s simply the question of time before gold price gets to the higher levels…
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