Timeframe: 4-Hour (4H)
Pattern: Rising Wedge
A rising wedge pattern has been identified on the 4-hour chart of the AUDJPY pair. This formation typically indicates a potential reversal or a slowdown in upward momentum, as prices move within converging trend lines that slope upwards.
The rising wedge is characterized by higher highs and higher lows, suggesting a gradual tightening of price action. However, the overall sentiment is bearish, indicating that buyers may be losing strength.
Forecast: Sell
Given the current analysis, the forecast suggests a potential selling opportunity. The pair appears poised for a breakout to the downside, which could signal a reversal from the previous uptrend.
Technical Outlook:
Resistance Zone: The upper boundary of the rising wedge, where selling pressure may intensify.
Support Zone: The lower boundary of the wedge, which could act as a target for downside movement.
Key Levels to Watch: A confirmed break below the lower trend line would reinforce the bearish outlook.
Traders should monitor for confirmation signals such as increased selling volume or bearish candlestick patterns to validate the entry.
Keep an eye on broader market conditions and relevant news events that may influence price action
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.