The daily time frame of the AUD vs JPY has closed on Friday creating a pin bar doji at the resistance level between 94.090 and 94.457. This candlestick is a representation of supply outweighing demand. What is significant is how high price moved up but the bears overpowered the bulls and pushed the price nearly 90 pips down from the upper resistance zone at 94.457 to below the zone at 94.090 and closing at 93.599 Just the rejection is impressive and shows that the level above is a strong resistance point. On the chart you see the upper resistance zone between 94.090 and 94.457 and the lower support zone at 90.647 and 91.071 Price has been ranging within this zone since September 2013 with a few breaks but mainly maintaining within the zone. All signs indicate that price will not break the upper level of resistance and we should see a decline in price in the near future. There is the possibility for price to move upwards and test the upper zone but more long term I see a decline on the horizon. Have a great trading week and God bless!
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