|

Is it time for a recovery in AUD/JPY?

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.

AUDJPY

Author

More from JFD Team
Share:

Editor's Picks

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data. 

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.