AUDJPY is testing a resistance zone around 93.85 after breaking through a mass of resistance around its 100-day SMA. The pair is in a long-term upward channel (see chart) which may see it make a new 2014 high, a theory which is supported by a bullish crossover in daily MACD. There have also been some bullish technical developments in AUDUSD after it pushed through its 200-day SMA, which supports our bullish scenario for AUDJPY. However, if price action stalls and fails to break through a resistance zone around 93.85, it may sink towards the bottom of its trading channel, a break of which would negate the aforementioned long-term bullish scenario.
Resistance
- 94.45/50 – 2014 high
- 95.70 – high from October
- 97.45
Support
- 93.00
- 92.40 – 100-day SMA
- Channel support
Source: FOREX.com
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