AUD/JPY Price Analysis: Bulls push past the 20-day SMA, with consolidation still prevalent
- The AUD/JPY pair surpassed the 20-day SMA, indicating a rising bullish momentum.
- Despite the rise, the pair is still in a consolidation phase, hinting at the possibility of limited gains.
- The bull's next target stands at 105.00.
In Wednesday's session, the AUD/JPY pair exhibited a promising move, surpassing the 20-day Simple Moving Average (SMA) at 103.90. This could be a positive sign, demonstrating strength in the Australian Dollar against its competitors. However, the ongoing consolidation phase suggests that there may not be enough momentum for a persistent rise.
The daily Relative Strength Index (RSI) for the AUD/JPY currently stands at 59 suggesting a significant shift from Tuesday’'s 53. On the other hand, the Moving Average Convergence Divergence (MACD) continues to display decreasing red bars, suggesting a potential weakening in the bearish momentum.
AUD/JPY daily chart
In conclusion, the AUD/JPY pair seems to be in a consolidation phase, despite successfully rising above the 20-day SMA. The range of 102.00-103.00 may denote the next trading patterns unless the bulls retain control above the 20-day SMA. Nonetheless, the reduction in selling momentum could denote a preparation by the bulls for the next upward swing and might retest the 105.00 area.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
