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AUD/JPY Trying to Confirm the 73.93 Support

December 2, 2019 at 5:00 by Dorin Rosu

The Australian dollar versus the Japanese yen currency pair is reconquering an important support area.

Long-term perspective

The price is in an ascending trend, starting with the low at 69.95 and having the high of the last impulsive swing at 75.67.

After printing the low at 73.35 (which pertains to the false piercing of the 73.93 level), the bulls did all in they could to limit any movement to the downside. And they managed to, as — after the labeled 74.31 high — they put the price back above the level following a second bearish attempt to push the price lower.

One amendment would be that they could not take out the 74.31 high, but that is well balanced as November 28 and 29, respectively, both closed above the level. In other words, the week managed to close above 73.93, an unfolding which is rendered as nothing else than a bullish sign.

But, of course, sooner or later the bulls must do their duty and push the prices higher, as any delays will offer more optimism to the bears.

The price could falsely pierce once more the 73.93 support and then head for the 76.00 level, which serves as the main target.

Another possibility is for the price to continue the oscillation above the level for yet another day, and then close above the high of 74.13.

Once the bulls are set for a new endeavor for the 76.00 psychological level, 75.00 will also serve as an intermediate target.

Only if the low of 73.35 is taken out, then it can be considered that the bears are back in the market.

Short-term perspective

After the inability of the symmetrical triangle to favor the continuation of the depreciation, the price developed in a bullish manner.

As can be seen, the bulls targeted the confirmation of the double support made possible by the upper trendline that limits the triangle and the 73.90 level.

From this area, the price can extend to the 74.96 resistance.

Only if the price gets under the aforementioned double support and confirms it as a resistance, then the attention can be switched towards 73.10.

Levels to keep an eye on:


D1: 73.93 75.00 76.00
H4: 73.90 74.96 73.10

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

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