“How to do AUD JPY technical analysis in forex?” If that’s what you are wondering, then before proceeding, it is first essential to understand what technical analysis actually is. Well, technical analysis is an approach to predict the future movements in the market. Here, you have to consider all the technical aspects, reading the previous happenings and historical trends of forex market before speculating the next moves. It is a very subjective approach.
These approaches help in making forex trading decisions based on proper analysis of not just forex but also commodities market. In technical analysis, you have to deal with past price charts, indicators and find distinctively similar patterns.
2 sides of the coin:
There is a contradictory debate on the concept of AUD JPY technical analysis. Here, future predictions are made based on historical events so that you won’t get 100% accurate outcomes. But the good part is if you learn to utilize this approach correctly, you will get the best accurate predictions that can give you big gains at the end.
The bottom line is to have a clear understanding and experience to frame an effective strategy. For this, you can take help from online forex trading platforms who offer free demo accounts for newbies. Practice there safely without any chances of loss and get the real-time experience of the market.
3 basic principles of AUD JPY technical analysis:
Now, movement of price happens in trends. You need to calculate these trends or change in patterns whenever there is a noteworthy movement in the market. Certain patterns of currency pairs like AUD vs USD technical analysis give positive forecasts that will help you to make FX trade decisions.
The chart patterns that I was talking about have been known in the global forex sphere for more than a century now. Analysts have also noted no change in human behavior to a great extent. That is the reason why previous records are studied in technical approach as these patterns are expected not to change in the coming days as well.
Indicators of technical analysis:
There are certain technical indicators used in this approach to predict future price movements. Here are the two major ones:
- RSI – Expanding to Relative Strength Index, RSI is a multi-functional tool used to measure the power or strength of the current price, comparing it with the previous currency value.
- MACD – Expanding to Moving Average Convergence Divergence, this indicates divergence is happening between two major moving averages and signal of trigger line. Future trends occur when these trigger lines and MACD pass through.
With all these tools and techniques, make sure the strategy you frame should be simple and not complicated. Only then can you earn big gains in forex trading through AUD vs USD technical analysis. Do you have other ideas? You can always share them in the comments section below.