The Australian dollar versus the Japanese yen currency pair is building ground for further appreciation. But can the bears consider this delay as their opportunity?
The false piercing of 71.09 was followed by the confirmation of the level as support and the appreciation that started the current ascending movement, respectively.
The last impulsive swing peaked at 75.67. The retracement that started after it printed the low of 73.35, from where another upwards pointing leg emerged and extended until 74.84.
If joined, the highs — of 75.67 and 74.84, respectively — and lows — of 73.35 alongside the high wave candle of December 10 — crystallize two lines, lines that converge into a symmetrical pattern which is highlighted on the chart. This type of pattern, by the very reason of being symmetrical, can be considered as a consolidation that will, later on, continue the movement that preceded it — and as the 71.73 to 75.67 swing translates into an ascending movement, the expectations are for the bulls to continue driving the prices higher.
The high wave on December 10, printed its low at 73.93 and, thus, confirmed the level as support. Because of this, the bulls have more reasons to envision themselves conquering 76.02, which serves as their main target.
Naturally, along the way, other levels can be used as partial profit booking areas, and the psychological 75.00 level is one such level.
Only if the high wave is invalidated (by a candle that closes under its low), then any endeavors towards the north are to be delayed.
The price rests on the supportive level of 73.90. From what can be seen, the highs are lower highs, but because every time the price touches the 73.90 level the bulls don’t allow further advancement towards lower prices, the expectations are for a new higher high to be printed, thus shifting the direction and, eventually, the market profile to a bullish one.
The target, in this case, is represented by 74.95. Only if the bears manage to confirm 73.90 as resistance, then the attention is switched to 73.10. But from what can be seen, similar attempts — starting from half in November — were unsuccessful, as the price got above 73.90.
Levels to keep an eye on:
D1: 73.93 76.02 75.00
H4: 73.90 74.95 73.10
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