Breaks below this support after the yesterday’s formation of Gravestone at 86.890.
For now heading test the supports at 86.604 and even 85.895 levels which we already stated earlier that it was unable to breach above these levels, as a result more weakness is anticipated in this pair at current level.
More importantly, as shown in the diagram symmetric is spotted out, this symmetrical continuation triangle ( ) is deemed a signal, indicating that the current downtrend may continue upto above stated support levels.
EOD graphs reveal sentiments, you can figure out the pair has currently fallen below 10DMA and headed towards south.
More importantly, leading oscillators like and slow curves began showing convergence with the previous downswings; we believe this as bears are getting active.
is currently trending at around 52.7236 that has been showing downward convergence to the price dips from 70 levels which is overbought zone.
While bears to extract maximum leverage to their returns as we can see the attempts of %D crossover that is signifying again more retracement is likely and it gives us one more reliable indication that the pair is likely to find above mentioned .
Option strategy: Put Ratio Back Spreads (PRBS)
As we expect the underlying currency exchange rate of AUDJPY to make a larger move on the downside, purchase 1M 2 lots of At-The-Money -0.52 delta puts and sell 1W one lot of (1%) In-The-Money put option.