AUD/JPY traded yesterday and today during the Asian and EU sessions. The recovery started after the pair hit support at 80.15, allowing us to draw an upside support line from the low of July 20th. Although AUD/JPY continues to trade below the downside resistance line taken from the high of May 10th, the fact that we now have a higher low suggests that the bulls may be willing to stay in the game for a while longer.
A clear break above 81.50, which provided resistance between July 22nd and 27th, could confirm the case of a larger recovery and may initially target the high of July 16th, at 81.95. A break above that level could carry larger bullish implications, perhaps paving the way towards the 82.78 zone, defined as a resistance by the high of July 13th and the inside swing low of June 30th, the break of which could see scope for extensions towards the 83.28 level, or the downside line taken from the high of May 10th.
Our short-term oscillators detect positive price momentum and support the notion for further advances. The RSI lies above 50 and points up, while the MACD runs above both its zero and trigger lines, pointing up as well.
Now, in order to start examining whether the bears have regained control, we would like to see a dip below 79.85, the low of July 20th. This will confirm the dip below the recently drawn upside line, and would take the rate into territories last tested back in February. We will then aim for the low of January 28th, at 79.20, or the low of January 4th, at 78.84, where another break could target the low of December 28th, near 78.45.
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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.