AUD/JPY Price Analysis: Bulls hold the fort despite closing a losing week
- The AUD/JPY stands strong at around 97.45, flaunting a gain of 0.25%.
- Despite the upwards movements, the cross will still close a 0.20% weekly loss.
- An optimistic scenario is reflected in larger time frames with the pair trading above the 20,100,200-day SMAs.
On Friday's session, the AUD/JPY was trading at 97.45, up by 0.25%. The daily chart shows a neutral to bullish sentiment, with bulls keenly holding their ground while the four-hour outlook mirrors the daily one, with a predominant bullish presence.
The indications on the daily chart reflect a sideway move with a slight bullish inclination. A surge is suggested by the Relative Strength Index (RSI) with a positive slope and lies in positive space, indicating that the buying strength still holds the upper hand. Yet, the Moving Average Convergence Divergence (MACD) showing static green bars suggests a lack of momentum for further bullish advancement. However, positioning above the 20, 100, and 200-day Simple Moving Averages (SMAs) solidifies the evidence that bulls dominate in the long-run realm, even with the weekly retracement.
The four-hour chart, it echoes a similar sentiment. The Relative Strength Index (RSI), still in positive territory and on an upward bend hints at the continued presence of bullish momentum. In the meanwhile, the Moving Average Convergence Divergence (MACD) laying flat with red bars could point to a short-term pullback or consolidation period. Nonetheless, the bulls' persistence indicates that the uptrend may continue in the following trading sessions, assuming that buying pressure remains.
AUD/JPY levels to watch
AUD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
