AUD/JPY developed a bearish momentum during last few weeks… It seems that this price action is part of a potential wave 4 correction and we continue to expect a bullish reversal and momentum for wave 5.
We will review different scenarios as the pair can either bounce for an uptrend or expand the bearish momentum.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
As the below chart shows, the pair developed a bearish momentum… In my view, this correction could be part of potential wave 4. Price bounced from 61.8% Fibonacci level which is a key spot for confirming or invalidating wave 4. A break below this Fib will be invalidating this wave pattern whereas a bounce and continuation will confirm the start of a bullish wave 5.
For the moment I expect one more higher high for wave 5 but we still need more confirmation before trading this pair… in the next paragraph, we will discuss this development by using SWAT software.
Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum and still needs some developments to confirm the bullish wave 5 starts… Here are the main developments to consider:
So in my view, traders should wait for the confirmation before trading this pair and look for buy opportunity only as it matches the expected wave.
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