- AUD/JPY bears lining up for an opportunity from a deep correction.
- Daily prospects are for an extension to the downside in a tiring bull short term market.
AUD/JPY is ripening for a downside extension in a series of bearish confluence across the time frames.
Further to the prior analysis, AUD/JPY Price Analysis: M-formation completed, bears lurking, a risk-on environment is enabling the bulls to squeeze out the last drops of upside, but the technicals are against the tide.
The following illustrates where the next downside opportunity will come from a break of 40hour structure that will open prospects for a downside extension of the latest bearish impulse.
For a re-cap, in the prior AUD/JPY Price Analysis: Bulls target daily resistance, the market had followed suit in accordance with the price action forecast as follows:
The daily chart above and the 4-hour chart, below, are prior analysis in anticipation of a correction and discount for bears seeking a downside extension of the daily impulse.
On Wednesday, this was the state of play:
We are now deep into the resistance:
The next move to the downside will need to break the current support structure to affirm the downside bias for the bears.