AUDJPY M30 – Market Analysis
More than 1 week AUDJPY was moving in a trading range (limited by 82.80 and 85.05) between long term support and 2 resistance levels (long term and short term resistance).
The first resistance level was formed when the price started to move down after several weak signals. Later the price came again to this level. Weak signals (Supply and Minor Supply) tell us that this time there will be no break-out. Two resistance levels which are very close to each other – it is a very strong barrier for higher prices. It will require effort to cross this level. Look carefully when the price is near the support or resistance levels. Volume, spread and strong/weak signals will help us to understand if the price is going to cross these lines now.
In the chart I highlighted down bar with wide spread on high volume. This movement was created by important news – “Nonfarm payroll employment” in the US. There is always high volatility in the market right after the news. Here we see that the result of this effort is negative – the market has turned and started to move up.