AUD/JPY Price Analysis:Bulls Pause, pair remains steady above 108.00

AUD/JPY moderates, hovering steadily above the 108.00 mark, wrapping up a week with a 1% gain.
Buyers are taking a breather and keeping the cross in cycle highs.
A healthy correction shouldn’t be taken off the table.

Patricio Martín FXStreet

In the trading session of Friday, the AUD/JPY pair curtailed its recent bullish momentum but managed to close the week around 108.50 level. This slight pullback, most likely an effect of traders booking profits, has not blown out the bullish shine of the pair's weekly performance, winning a close of 1%.

In the day's performance, the Relative Strength Index (RSI) for the AUDJPY settled at 80, translating into a flattening but still pointing towards an overbought scenario. This may indicate the potential of a forthcoming correction in the near term. Concurrently, the Moving Average Convergence Divergence (MACD) painted a scenario of flattening green bars, mirroring a cooling of the robust bullish momentum.

AUD/JPY daily chart

Looking at the bigger picture, the AUD/JPY pair keeps showing signs of robust bullish sentiment underpinned by its standing above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). In the event of a corrective pressure bringing the pair could will face at the 108.00 mark and then further down at the 107.50 and 107.00 levels. Specifically, the 104.90 (20-day SMA) level could serve as an additional support line.

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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