AUD/JPY 4H Chart: Double Bottom

Since the second week of August the Aussie/Yen currency pair has been forming the double bottom pattern. After a considerable drop on August 24 the pair managed to stabilise. At the moment there are signs of a recovery, but in case the Australian Dollar is unable to penetrate the resistance at 87, it will be forced to resume declining. Additional supply is located above the 88 level, where the 200-period SMA merges with the weekly R2. Bears are supported by technical studies on daily and weekly time frames as they are sending signals to sell the Aussie. In the meantime, market sentiment remains positive with respect to AUD/JPY, there are 74% of long trades opened.