AUDJPY Stays in a Downtrend; Will the Bears Remain in the Driver’s Seat?

JFD Team JFD

AUD/JPY traded lower on Tuesday, after it hit resistance at 85.60, slightly below the short-term downtrend line taken from the peak of the 31^st of January. However, the slide was stopped near 84.25 and then the rate continued in a sideways manner between that support and the resistance of 84.90. Bearing in mind that the rate continues to trade below the aforementioned downtrend line, and also below all three our moving averages, which point south, we believe that the short-term outlook remains negative.

Sellers may regain control soon and aim for another test near 84.25. If they prove strong enough to overcome that support hurdle, then we may see them targeting our next support of 83.75, defined by the low of the 22^nd of June.

Shifting our attention to our short-term oscillators, we see that the RSI, although below 50, rebounded somewhat from near its upside support line. The MACD lies below both its zero and trigger lines, but shows signs of bottoming. These indicators suggest that a minor corrective bounce may be looming before the next negative leg.

Nonetheless, as long as such a rebound remains limited below 84.90, we see a decent likelihood for the bears to take charge again and drive the battle lower. We would like to see a clear move above that resistance and the short-term downtrend line taken from the peak of the 31^st of January before we start examining the case for a near-term reversal. Such a break could initially pave the way for our next resistance zone of 85.60.

Are you interested in institutional-grade Research? Sign up for our Weekly Strategic Report HERE – it’s free!

Article written by Charalambos Pissouros, Senior Market Analyst for JFD Brokers

You want more? Subscribe to our JFD YouTube Channel HERE. To contact Charalambos send an email to [email protected]

Author

JFD Team

JFD

EUR/USD retakes 1.1800 on renewed USD weakness

EUR/USD gains ground after three days of losses, re-attempting 1.1800in the European trading hours on Thursday. The US Dollar sees fresh selling interest across the board, despite hawkish Fed Minutes, as the market mood improves and supports the pair. US Jobless Claims data, Fedspeak and geopolitics remain in focus.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold clings to gains above $5,000 amid safe-haven flows and Fed rate cut bets

Gold sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.