AUD/JPY Price Analysis: Bullish momentum builds, divergence risks loom

A neutral outlook is seen on the daily chart.
The hourly chart for AUD/JPY paints a different picture, showcasing mounting buying pressure.

Patricio Martín FXStreet

The AUD/JPY pair is currently trading at 97.99, showcasing slight losses. The currency pair is experiencing a delicate dynamic between short-term buyers, who are starting to become more active, while on the daily chart, the outlook is mixed. However, the overall trend remains bullish as the pair hovers above key Simple Moving Averages (SMAs) of 20,100 and 200 days.

On the daily chart, the AUD/JPY pair is displaying a neutral momentum, underpinned by the Relative Strength Index (RSI) falling to negative territory this week. However, a slight increase was observed in the latest reading, suggesting a balanced market. Moreover, the fading red bars of the Moving Average Convergence Divergence (MACD) histogram indicate softening bearish momentum, casting doubt on the durability of the latest bearish move.

AUD/JPY daily chart

Taking a look at the AUD/JPY hourly chart, an interesting contrast comes into the picture. The recent positivity in the hourly Relative Strength Index (RSI), now within positive territory, underscores the mounting buying pressure at a granular level. Additionally, the rising green bars on the MACD histogram reveal escalating bullish momentum in this shorter timeframe, dispelling the cloud of bearishness cast by the daily chart.

AUD/JPY hourly chart

When combining daily and hourly views, it appears that the AUD/JPY is about to experience a period of consolidation after hitting multi-year highs in late February.

AUD/JPY

Overview
Today last price	98.04
Today Daily Change	-0.02
Today Daily Change %	-0.02
Today daily open	98.06

Trends
Daily SMA20	97.96
Daily SMA50	97.32
Daily SMA100	96.95
Daily SMA200	95.84

Levels
Previous Daily High	98.22
Previous Daily Low	97.38
Previous Weekly High	98.84
Previous Weekly Low	97.34
Previous Monthly High	99.06
Previous Monthly Low	95.5
Daily Fibonacci 38.2%	97.9
Daily Fibonacci 61.8%	97.7
Daily Pivot Point S1	97.56
Daily Pivot Point S2	97.06
Daily Pivot Point S3	96.73
Daily Pivot Point R1	98.39
Daily Pivot Point R2	98.72
Daily Pivot Point R3	99.22

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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