By: Mike Kulej
After staging large bullish run last Monday, AUD-JPY spent most of the week pulling back. Late Friday this pair finally closed weekend gap, before moving slightly higher. Hourly chart built a relatively wide congestion zone between 84.75 and 81.45.
Friday low, together with opening range of the weekend gap, create support of some importance for this time frame. Down sloping price direction indicates bearish bias, which is supported by similar action in Momentum indicator.
Both price and indicator sit next to their respective supports at 81.45 and 98 (momentum reading). Move under these levels will have additional bearish implications, meaning possibility of reaching 80.00, next support for AUD-JPY. If price remains within congestion zone, it should be viewed as neutral, at least for Monday, which is very light on fundamental announcements.
Aussie-Yen in Congestion Zone
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