FxWirePro: AUD/JPY bulls break channel resistance despite Long Legged Doji and Shooting Star formation – Stay long in mid-month futures

Long-legged dojis on the monthly and Shooting star on weekly occurred while bulls shrug-off these bearish patterns to break above major resistances on both time frames.

You are probably seeing bull streaks of AUDJPY from the last couple of months despite the formation of shooting star and spinning top at 81.275 and 80.393 levels respectively on weekly charts, a long-legged doji occurred at 77.525 levels on the monthly terms.

The bulls in intermediate trend break above channel resistance or 81.520 levels (see monthly plotting), the sustenance above may extend upswings, watch out for more rallies up to next targets of 86.379 levels.

The current prices have gone above SMAs on weekly and 7EMA on monthly terms, please also be advised that the both leading indicators converge to the prevailing upswings.

RSI signals strength in the uptrend, while stochastic curves have been indicating healthy buying momentum on both time frames. We see the strength in buying interest confirmed as RSI converging to the corresponding upswings above 63 levels on weekly and above 47 levels on monthly terms.

Additionally, MACD bullish crossover signals uptrend to be extended further in the weeks to come, while 7SMA crosses over 21SMA which is a bullish signal.

Trade tips: Well, as a result of above technical reasoning, we recommend adding longs in futures contracts of mid-month expiries for targets of 85.646 and 86.379 levels but with a strict stop loss at 81.520 and 79.840 levels.