AUDJPY H4Let's break down the analysis of the AUD/JPY 4-hour chart step by step.
1. **Key Levels**:
- **Resistance Levels**:
- 103.859: This is a significant resistance level, as highlighted by the upper black line.
- 103.628: Another resistance level, indicated by the upper red line.
- **Support Levels**:
- 102.653: This is a crucial support level, highlighted by the lower red line.
- 100.606: A major support level, represented by the lowest black line.
2. **Current Price**:
- The current price is 103.089, which is marked in the middle of the chart.
3. **Potential Scenarios**:
- **Bullish Scenario**:
- If the price breaks above the 103.628 resistance level, it could move upwards towards 103.859.
- If the price sustains above 103.859, it might continue to rise, aiming for higher levels (not shown on this chart).
- **Bearish Scenario**:
- If the price breaks below the 102.653 support level, it could decline towards 100.606.
- A break below 100.606 would be significant and could indicate further downside potential.
4. **Price Action Analysis**:
- The price has been moving within a range between 102.653 and 103.859, indicating consolidation.
- There have been previous instances where the price tested these levels, showing their importance.
5. **Arrows and Possible Movements**:
- The upward arrows indicate potential bullish movements if the resistance levels are broken.
- The downward arrows show potential bearish movements if the support levels are broken.
6. **Market Sentiment**:
- The chart suggests a neutral sentiment currently, as the price is within the range and has not broken out decisively in either direction.
In summary, traders should watch the key levels of 103.628 and 102.653 closely for potential breakouts. A move above 103.628 could signal bullish momentum, targeting 103.859 and higher. Conversely, a break below 102.653 could indicate bearish momentum, potentially aiming for 100.606.
