FX.co ★ AUD/JPY forming a strong reversal, remain bullish

Price bounced perfectly above our stop loss and is forming a strong bullish reversal. We remain bullish above major support at 82.59 (Fibonacci retracement, horizontal support, bullish divergence) and we expect a strong bounce above this level to at least 83.27 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (89,5,3) is seeing strong support above the 8% level where stochastic is bouncing nicely and also displays bullish divergence versus price signalling that a bounce is impending.

Correlation analysis: Mixed view on JPY today with AUD/JPY expecting a bounce but EUR/JPY and USD/JPY expecting drops.

Buy above 82.59. Stop loss at 82.21. Take profit at 83.27.