AUD/JPY Price Analysis: Bulls gather momentum, consolidation ongoing
- Daily chart indicators suggest a positive incline; RSI climbs up.
- Hourly chart indicators flatten out in positive territory, indicating consolidation after recent gains.
- The pair is seeing signs of bullish exhaustion after recent gains, with eyes set on support around the 103.60-103.80 area.
In Friday's trading session, the AUD/JPY pair soared to the 104.50 region owing to positive momentum, reinforcing expectations of an overall bullish landscape. However, the market's upward trajectory is showing signs of fatigue, and the pair has entered in a consolidation phase.
As per the daily chart, the RSI has ascended near to the 70 region, presenting a slight recovery from Wednesday's drop to 67, suggesting a potential halt to the previous downtrend. Corresponding with this, the MACD prints flat red bars, indicating a possible pause in the market's selling traction.
AUD/JPY daily chart
Confirming these dynamics is the hourly chart. The RSI and MACD are greener and have flattened, indicating a potential period of consolidation following the recent rally.
AUD/JPY hourly chart
In retrospect to the session on Thursday, sellers were repelled at the 20-day SMA mark of 103.60 and again on Friday at 103.80. These developments have set a formidable support base around that region, which appears could be leveraged to stabilize the recent gains. Any downturn below the 20-day SMA may risk undermining the short-term bullish atmosphere.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
