AUD/JPY Price Analysis: An upward break of a bullish flag keep bulls in control, eyeing 83.00
- The AUD/JPY upside breaks confirm a bullish flag as bulls regain control above the 82.00 mark.
- AUD/JPY Technical Outlook: Despite being upward biased, would need a daily close above the 100-DMA to cement the uptrend.
The AUD/JPY breaks upward, above the 100 and the 200-day moving averages (DMAs), at 82.53 and 82.40, respectively. At the time of writing, the AUD/JPY cross-currency is trading at 82.56.
The market sentiment is upbeat. US equity indices ended in the green, while Asian stock futures point to a higher open. The risk-sensitive AUD was bolstered in the FX complex, while the JPY was the laggard on the Tuesday session, courtesy of the rise in US T-bond yields, with the 10-year yield, at 1.965%.
AUD/JPY Price Forecast: Technical outlook
The AUD/JPY broke a bullish flag to the upside, though the 100-DMA capped the move. However, the long-real body of Tuesday’s price action suggests that the uptrend could accelerate towards fresh daily highs, even opening the door for a challenge of the YTD high.
That said, the AUD/JPY first resistance would be January 20 daily high at 82..97. Breach of the latter would expose a four-month-old downslope trendline around the 83.25-40 range, followed by the psychological 84.00 figure.
Contrarily, failure to reclaim 83.00 could pave the way for further losses in the AUD/JPY pair. The first support would be 82.00, pushing the price below the top-trendline of the bullish flag, viewed as a false breakout. A crackdown of the 82.00 mark would expose January 24 daily low at 80.69, followed by January 28 at 80.36.
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
