- AUD/JPY is testing deeper into the monthly resistance.
- Bears are on the lookout for a test of prior resistance.
As per the prior, AUD/JPY Price Analysis: Heavy and in trapped weekly environment, the price is testing the weekly resistance but there are prospects of a downside move.
The following illustrates this on the daily chart which offers a bearish W-formation that could see the price correct towards the 10-EMA.
Prior analysis, monthly, weekly and daily
As per the daily chart above, the price could well have been drawn in to test a 50% mean reversion of the bullish impulse.
However, there has been a further probe of the monthly resistance since the analysis as follows, which brings the 38.2% Fibonacci into line with the prior resistance structure: