AUDJPY finds support buyers at the 200 hour MA twice today

Technical Analysis

Author: Greg Michalowski | audjpy

200 hour MA importance increases

The AUDJPY opened lower and moved to the low price for the day in the 1st hourly bar that low came in at 75.638. At the time is just above the 200 hour moving averages 75.624. In the New York session, the price decline also fell toward that moving average line. In this case the low price reached 75.679 when the 200 hour moving averages at 75.673.

200 hour MA importance increases_
So there been to test of the 200 hour moving average today and both found support buyers lean against that level. That helps to increase the levels of importance going forward. For traders stay above keeps the buyers more in control. Move below and there should be additional selling momentum on the break.

At the highs today the price was able to extend back above its 100 hour moving average (blue line in the chart above). It also traded above a swing low from August 7 at 75.979. However, staying above the 76.00 level (the high reached 76.01), could not be sustained and the price subsequently moved down toward the retest of the 200 hour moving average.

What now?

We know the 200 hour moving average is a key support and should be increasingly more important as a result of the dual tests and bounces off the level. 

On the topside although the price moved above the 100 hour moving average, they quickly faded and failed. So getting back above that level (and staying above) would be eyed by buyers.

In between sits the 38.2% retracement of the move up from the July 30 low to the high reached on Friday's trade at 75.815. The last 4 hours have been able to close below that level on the hourly chart. That tilt the bias a little bit more to the downside.

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