After finding support near 81.00 on Thursday, AUD/JPY shot up and during the European morning Friday, it emerged above the 81.65 resistance (now turned into support) barrier. The rebound from near 81.00 confirmed a higher low, while the move above 81.65 confirmed a forthcoming higher high on the 4-hour chart, and thus, we would consider the short-term picture to have turned somewhat positive for now.
That said, we would like to see a clear move above 82.05 before we get confident on more upside extensions. Such a break is possible to pave the way towards our next resistance of 82.40, defined by Monday’s peak. Another break above that level is possible to carry extensions towards the 82.75 zone.
Looking at our short-term oscillators, we see that the RSI edged north and moved above its 50 line, while the MACD, although negative, stands above its trigger line and looks to be heading towards zero. These technical studies support the notion for AUD/JPY to continue climbing higher for a while more.
On the downside, a dip back below 81.65 is possible to aim for the tentative uptrend line drawn from the low of the 19th of June, but even if this is the case, we would still see a cautiously positive short-term outlook. We believe that there would still be a decent likelihood for the bulls to jump in from near that line.
We would like to see a clear break below that short-term upside line before we abandon the bullish case. Such a dip could initially aim for another test near the 81.00 zone, the break of which could see scope for our next support territory of 80.70.
Join now with Forex Expert Signals given only at Good Opportunities
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.