AUDJPY is breaking above the long-term upside resistance
What is happening with AUDJPY? We are seeing the MONTHLY November bounce off the support 74 and a break above the long-term resistance 76.80 followed in December. Does this mean that the AUDJPY continues higher above the key long-term resistance 78? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month happening in November but we need to see a continuation above 78 which was the 2020 high for an extension higher to 83.50.
The only thing that we can’t rule out is a violent price action around 78 is not excluded and this is exactly the strong resistance for an extreme upside continuation. At the moment a break and confirmation above 78 is a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. A rejection here could lead to a downside reversal below 76 and a retest of the important 75.500-76 support zone.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
