AUD/JPY Price Analysis: Bulls gather momentum, consolidation ongoing
|- Daily chart indicators suggest a positive incline; RSI climbs up.
- Hourly chart indicators flatten out in positive territory, indicating consolidation after recent gains.
- The pair is seeing signs of bullish exhaustion after recent gains, with eyes set on support around the 103.60-103.80 area.
In Friday's trading session, the AUD/JPY pair soared to the 104.50 region owing to positive momentum, reinforcing expectations of an overall bullish landscape. However, the market's upward trajectory is showing signs of fatigue, and the pair has entered in a consolidation phase.
As per the daily chart, the RSI has ascended near to the 70 region, presenting a slight recovery from Wednesday's drop to 67, suggesting a potential halt to the previous downtrend. Corresponding with this, the MACD prints flat red bars, indicating a possible pause in the market's selling traction.
AUD/JPY daily chart
Confirming these dynamics is the hourly chart. The RSI and MACD are greener and have flattened, indicating a potential period of consolidation following the recent rally.
AUD/JPY hourly chart
In retrospect to the session on Thursday, sellers were repelled at the 20-day SMA mark of 103.60 and again on Friday at 103.80. These developments have set a formidable support base around that region, which appears could be leveraged to stabilize the recent gains. Any downturn below the 20-day SMA may risk undermining the short-term bullish atmosphere.
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.