AUD/JPY unlocks fresh highs; next key resistance 76.26 [Video]
|AUDJPY stretched to a fresh 3 ½-month high of 75.65 and near the 200-day simple moving average (SMA) on Thursday but it found hard to close comfortably above the 50% Fibonacci of the downleg from 80.70 to 69.94.
The price is currently trading slightly lower and even though the RSI and the MACD are fluctuating at a softer pace, the bullish bias is still intact as long as the former holds well above its 50 neutral mark and the latter remains above its red signal line.
A rally above the 200-day SMA could stall somewhere between the July high of 76.26 and the 61.8% Fibonacci of 76.60. Breaking that area, the uptrend off 69.94 could gain some extra legs, with resistance probably moving up to 77.70 – a strong support area in the first three months of the year. Higher, the way would open towards the 78.68-79.00 region.
Failure to clear the 50% Fibonacci of 75.31 would shift attention down to the 20-day SMA. The 38.2% Fibonacci of 74.00 could also curb downside corrections if the sell-off extends lower, while beneath that, traders would lose confidence on the upward pattern, with the next obstacle probably coming within the 73.00-72.47 zone.
In the medium-term picture, the pair is in a sideways move and only a decisive close above 76.60 would mark a positive direction.
Summarizing, AUDJPY maintains a bullish but weaker short-term bias, with the next key resistance awaited to appear in the 76.26-76.60 area. Breaking that wall, the positive sentiment could also stretch into the medium-term timeframe.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.