AUDJPY entered a consolidation phase on the four-hour chart after the bounce on the eleven-year low of 66.33 on Monday, but the move did not change the bearish structure of lower highs and lower lows in the bigger picture.
The fact that the price is below its downward-sloping simple moving averages (SMA) further reduces the case of a trend reversal.
In momentum indicators, however, some improvement has been detected. The RSI looks to be gaining strength towards its 50-neutral mark, the Stochastics are pointing up, while the MACD has rebounded and is heading towards its red signal line, all hinting that the pair may remain above its recent lows in the short-term.
On the upside, the bulls should close above the 67.20-67.50 area formed by the 23.6% Fibonacci of the 76.52-66.33 downleg and the middle Bollinger band in order to revisit this week’s highs printed near the 38.2% Fibonacci of 69.00. Beating that obstacle, the rally may get new legs towards the 50% Fibonacci of 70.43, while higher, the next stop could be around the 71.20 resistance.
Alternatively, a decisive step below the 65.50 support level would bring the eleven-year low of 66.33 back into focus. Any violation at this point could trigger a sharper downfall, probably towards the 62.00-61.50 former restrictive zone.
In brief, AUDJPY is expected to record a neutral session above its recent 11-year tough in the short-term, simultaneously keeping the bearish structure in the bigger picture valid.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.