AUD/JPY - Higher low points to risk-on in the markets

Omkar Godbole FXStreet Contributor

The AUD/JPY cross is on the rise this Tuesday morning after having clocked a low of 86.40 levels. The cross currently trades just above the 50-DMA of 86.68.

Higher lows

The higher low formation seen on the daily chart indicates scope for a rally towards August 17 high of 87.56.

The bullish prospects for the AUD/JPY is a good sign for the equities, given the cross is a barometer for global risk sentiment. Moreover, the uptick in the AUD/JPY also adds credence to the moderate gains on the Wall Street on Monday and the positive action in the SP 500 futures.

AUD/JPY Technical Levels

A break above 87.04 [Aug 18 high] would open up upside towards 87.55 [Aug 17 high] and 88.02 [Aug 7 high]. On the downside, breach of support at 86.39 [23.6% Fib R of July 27 high - Aug 11 low] could yield a sell-off to 85.99 [Aug 18 low] and 85.45 [Aug 11 low].

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	High
1H	Bullish	Neutral	Low
4H	Bearish	Neutral	Low
1D	Bearish	Neutral	High
1W	Bearish	Neutral	Expanding
Updated Aug 22, 00:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.