The Australian dollar versus the Japanese yen currency pair extended the gains and reached the 75.40 rate. The question is now whether the appreciation will continue or not.
The downwards movement that started after the confirmation as resistance of 80.54 ended at 71.09 with the false break that printed the low at 69.95.
After that and the confirmation of 71.09 as support the price rallied to 73.93 from where it corrected and then continued the appreciation that, following the confirmation of 73.93 as support, peaked — as of 9:15 GMT — at 75.40.
The confirmation of 73.93 as support gave birth to a structure that etches higher lows and higher highs, a behavior that translates into a bullish signature.
Noteworthy is the bearish engulfing on October 31, which was invalidated as the price peaked at 75.40.
The current bullish profile remains viable as long as the 74.31 low is not taken out. So, even if the October 5 candle gets engulfed — by a bearish engulfing candle, of course — the bulls are still backed-up as 74.31 aligns with the peak of 74.46 and thus ensures an area from where the bulls can recharge. But this would lead to a consolidation phase that might test the 73.93 level yet again. This confirmation can take the form of a simple low — in other words, of a short-lived event.
So, as long as 73.93 is not pierced and confirmed as resistance, 76.02 remains the main target. In case if 73.93 gives way, 71.09 will be revisited.
The price is in an ascending movement that seeks to confirm every important level for the short term, with the purpose of pushing higher.
For now, 74.96 seems to be the support from where the bulls are trying to start a new push to the north.
After 75.33 is pierced and confirmed as support, the next targets are 75.62 and 75.99, respectively.
However, if 74.96 is taken out, then 73.90 is the first bearish target.
Levels to keep an eye on:
D1: 73.93 76.02 71.09
H4: 74.96 75.33 75.62 75.99 73.90
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