AJ seems like continue push to the upside to retest the weekly resistance before it goes down. According to some fundamental factors, the current worldwide recession could make JPY become stronger and stronger. From the daily perspective, AUDJPY has created an overextended W formation, after W formation, price normally will pullback to the neckline of the W, so the neckline of the W (a.k.a previous resistance turn support).
From the COT perspective, hedge funds are still bullish on JPY, they added around 4k of long positions on JPY in the latest week. And the recession could make JPY become stronger since JPY is safe heaven currency.
I will be monitoring the 4h price action inside the weekly resistance if there has shown any confirmation inside this area, then I will take a short position on AJ with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge funds are still bullish on JPY, they added around 4k of long positions on JPY in the latest week. And the recession could make JPY become stronger since JPY is safe heaven currency.
I will be monitoring the 4h price action inside the weekly resistance if there has shown any confirmation inside this area, then I will take a short position on AJ with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.