FxWirePro: AUD/JPY holds crucial resistance at 83.495 – short term opportunities for bulls but bearish trend may resume in medium term

This APAC pair is most likely to retest resistance (at 83.495 region) on daily charts, you can figure out from the chart that the red circled areas served as the strong supply levels for this pair couple of times in the recent past as well.

However, we also consider this as whipshaw at this resistance level on EOD graphs as it's been hanging around that resistance quite a few times that signals bearish movements back again which is adverse to the previous rallies.

Even though we spot out a likely dragonfly doji at 83.168 which is a bullish pattern on weekly graph, the pair is currently testing a crucial resistance at around 83.495 levels, for now it seems unlikely to breach that level.

More importantly, leading oscillators like RSI and slow stochastic curves shows indecision to these bullish indications with the previous upswings; so we believe this as bears may resume at any time as stochastic approaching overbought territory. RSI is currently trending at around 46.8572 while articulating.

With spot FX at 83.105 which is still 3.4% below 21DMA (86.0595), risky short term traders and intraday speculators can certainly take the opportunities by going long in binary calls for targets upto 83.495, however, please be mindful of the long term downtrend.

Thus, any breach of the above stated resistance level would determine the direction of next uptrend but little bias towards south.