The Australian dollar versus the Japanese Yen currency pair is being given a test by the 67.03 level.
The confirmation of the 76.01 level by the bears started a downwards movement that extended to as low as 59.87. But as the bears overextended, by departing too much and too fast from the important support of 64.12, the bulls saw the opportunity and sent the price back above it.
After that, the buyers managed to bring the price to the next resistance area, 67.03, respectively.
From here, one possible scenario unfolds as a continuation of the upwards movement. In other words, if the bulls pull out a close above the 67.03 level, then they can aim for the next important area, which is 71.09.
Another scenario, bullish also, is to see the price reaching above the 67.03 level and then throwing back in order to confirm it as support. The target remains the same 71.09 level.
Of course, in the event of the bulls not being able to continue with their march, the price would confirm 67.03 as resistance. In this case, the bears may be encouraged to bring the price to the next important support, 64.12, respectively.
But from 64.12, as the level is a major support, the bulls could come back in a very aggressive way. If this happens, then 67.03 becomes their prime target.
From the low of 59.87, the price extended to as high as 67.70. After that, the bears sent it under the level of 67.20 and pushed it under 65.38, etching the low of 64.91. But the bulls brought the price back above the level.
After this, the bulls formed an upwards movement that is being supported by the ascending trendline that starts from the low of 64.91. The line facilitated the bulls in reaching the level of 67.20 once more.
If the buyers succeed to pierce and confirm 67.20 as support, then their objective becomes the 68.81 level, which also corresponds to the lower limit of the gap that formed at the beginning of March.
However, if the level holds, then the price may have to test the trendline once more. If it is confirmed as support yet again, then the bulls could have another run for 67.20.
But if the trendline gets pierced, then the situation may turn neutral to bearish, with the sellers targeting 65.38.
Levels to keep an eye on:
D1: 67.03 71.09 64.12
H4: 67.20 68.81 65.38
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