Cross-rate signals: AUD/JPY formed a reversal model

Cross-rate AUD/JPY, after a rapid decline in the overall flight of investors from risk, has updated the current year’s low. But, in the conditions of correction of stock indices and overbought of the yen, this pair turned out to be in a significant oversold, which can cause the recovery of the AUD/JPY pair. An additional factor for the strengthening of the pair is the formation of pinbar on the daily timeframe.

The signal for recovery of the AUD/JPY pair will be the return of the pair above the 86.30-40 mark, which will open the way to the resistance levels: 87.00-20 and 87.50-60. Support is located at the levels: 85.80 and 85.50.

Fig. AUD/JPY. The current price is 85.80.

Hanzenko Anton