Both the yen and the aussie are taking a battering in Asia, but the latter has been hit even harder than the former. This has pushed AUDJPY to a support zone around the base of its daily Ichimoku cloud. While this in itself isn’t much to get excited about, some other technical indicators are giving off some interesting signals.
In the long-term, we cannot rule out further losses in AUDJPY, at least not at the moment. Daily RSI and MACD remain firmly in bearish territory and suggest that the path of least resistance remains to the downside. In saying that, price isn’t looking as bearish as it once was.
Short-term strength?
Over shorter time frames the pair is actually looking somewhat bullish. There is a bullish divergence between hourly RSI and price. Also, the hourly stochastic momentum index may be signalling that momentum is shifting to the upside, although this isn’t confirmed yet.
Overall, it appears that the pair may find some short-term strength if it can hold onto this support zone around the base of its daily Ichimoku cloud. However, a recent fall in AUDUSD through another important short-term support zone is slightly concerning. Yet, this can largely be attributed to USD strength, as opposed to outright aussie weakness.
AUDJPY – Daily
Source: FOREX.com
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