- AUD/USD is weighing on the cross from a technical standpoint, even while the yen has been slammed as U.S. stocks rally on earnings and positive U.S. data.
- AUD/JPY is now back below the 20-hr SMA, hourly trendline support and the 50% Fibo retracement of the flash crash lows to recent swing highs, resisted by the Ichimoku cloud and 50-hr SMA confluence.
- However, on a daily basis, the price has been bought up with volume by the bulls towards the bottom of the steep descending channel and stochastics lean heavily bullish, indicating a run to test the 76.30s could be on the cards, breaking the hourly cloud resistance and meeting channel and 4HR cloud resistance.
- A subsequent break and close above the 76.30s opens the case for a bid to the 76.80, top of 4HR cloud.
- However, general risk-off sentiment puts the old adage, 'the trend is your friend', a likely force favouring an extension to the downside, while the price trades below the 50% Fibo. To the contrary of a bullish case for the medium term, therefore, an argument can be made for risk towards 75.20s (4th Jan lows) bottom of the daily cloud/channel and then the 61.8% Fibo down at 74.70.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.