By Dan Eduard
After tumbling close to 100 pips in yesterday’s trading session, the AUD/JPY appears to be on the verge of an upward correction. Currently trading just above the 82.00 level, technical indicators are currently showing that a bullish move is likely to occur in the next 24-hours.
We will be looking at the daily chart for the AUD/JPY, provided by ForexYard. The technical indicators being examined are the Bollinger Bands, Williams Percent Range and Relative Strength Index.
1. As seen in our chart, the Bollinger Bands have begun to widen, which is typically seen as a sign of an upcoming reversal. Furthermore, the price ticks are well below the lower band, indicating that the reversal is likely to be upward.
2. The Williams Percent Range is currently right around the -90 level. Usually, anything below -80 is a sign that the instrument is in oversold territory. This appears to be the case at the moment, and is another sign that a bullish move is on the horizon.
3. The Relative Strength Index is currently well below the lower support line, indicating that a reversal may occur in the near future. Now may be a great time for forex traders to go long in their positions at a great entry price.
Forex Market Analysis provided by ForexYard.
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