Sunday, March 27, 2011
Trend for 27th of March 2011
Today I just wanted to write a few thoughts of mine regarding aud/jpy pair trend. From its’ most recent low which was established at 74.40 level on the 16th of March, the pair rose more than 900 pips with minor retracements. When the pair runs up such a distance in a very short period of time you expect it to run out of steam sooner rather than later. When you look at the charts you become even more convinced about a reversal of a trend in the pair.
You have to be very cautious when a pair approaches towards some resistance and support as there are much bigger chances that the pair will reverse there and not continue its trend. As far as I see, the pair is at important resistance now and I am in a selling mood about the pair. 83.70 level was touched quite a few times in the past and the pair reversed from there. A chance for a reversal is much bigger due to the fact that aud/jpy has been climbing to the present height without stopping and the bulls should be pretty tired now.
I do not mean to say that the trend will completely change now, but I do believe there is going to be a correction and the pair will fall to 81.00 level. Of course, this is only my prediction, but as I am following tendencies I state what I state, because there are more chances for the pair to reverse now, rather than continue its’ upward trend.
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