Here’s our forex pair choice for the end of this week. Take a look at the Australian dollar and pound sterling against Japanese yen.
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The current AUD structure shows that a large uptrend is forming, which is moving within the green channel.
Not so long ago, we saw the formation of a yellow channel at the point of a rebound from the upper green line.
Now we are in the middle of the yellow channel, and we can assume that the market can go up or down.
If the pair continues to move in an upward direction and will be able to break the resistance level of 0.734, which is at the upper line of the yellow channel, then it will open the way to the upper line of the green channel and the resistance level of 0.778.
If the currency pair starts moving in a downward direction and breaks the level of 0.716, located on the support line of the green channel, then in the next trading weeks we could expect a price decline to the area of the lower wall of the yellow channel and the support level of 0.709.
SimpleFX GBPJPY Chart Analysis: August 21, 2020
GBPJPY moves inside two channels directed upwards. The yellow channel describes the price behavior more precisely since it is smaller in size.
Recently, the price pushed off from the lower line of the yellow channel.
It is possible that the bulls will continue to push the market to the upper wall of the yellow channel and the resistance level of 143.25. If this level is broken, it is likely that the rise will continue to the upper green line and the resistance level of 146.48.
The alternative option shows that the bulls may not have enough strength to grow, so the bears will lead market participants down to the 139.11 level, which is on the support line. If they manage to break through this level, they will open a path to the lower wall of the green channel and the support level of 137.23.
