AUDJPY has been stuck in a neutral range after being unable to make significant headway above 80.60. Prices have been moving within the Ichimoku cloud since the rebound from the June 24 low of 72.41 fizzled out.
The neutral bias is underlined by the sideways moving 50-day moving average but with RSI just above neutral ground, there is still a slight positive momentum. If this positive momentum strengthens, AUDJPY will likely meet resistance at around 80.60 where it has struggled to close above this level. However, a break above 81.50 is needed for a more sustained rally.
To the downside, immediate support should come around 78.85, which is a previous support area. A breach below this level could fuel the sell-off to below the 50-day moving average and this would shift the bias to negative. Below that, 77.0 and 74.50 are the next support levels to watch.
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