- AUD/JPY looks exhausted on Friday following the previous two day’s run, still trades higher.
- Double bottom near 79.00 provides much needed support for the cross-currency pair.
- Momentum oscillators point to a struggle for the bulls to march higher at the current moment.
AUD/JPY edges mildly higher in the Asian trading hours on Friday morning. The pair gained in the previous session, which constitutes a rise of more than 100-pips. As of writing, AUD/JPY is trading,at 80.52, up 0.06% for the day.
AUD/JPY daily chart
Technically speaking, the pair has been in the short-term downtrend since June 17after making a high of 84.62, which was confirmed by a break of 20-day and 50-day Simple Moving Average(SMA) confluence at 84.57 and 84.43 respectively.
The pair bucked the previous trend following the formation of a Doji candlestick on August 20. AUD/JPY retraced back to September month high at 81.52 (September 3) only to fall back to the 79.00 level from where it jumped to 80.59 in a matter of previous two days.
If the price breaks the 20 and 50-day SMA crossover, it could test the 81.00 horizontal resistance level followed by the high made on September 8 at 81.64. Next, the AUD/JPY bulls would enjoy the 82.05 horizontal support level.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator trades below the midline with a bearish stance. Any downtick in the MACD would invite bears back into the picture with the 80.00 horizontal support level as the first downside target.
A daily close below 80.00 would prompt AUD/JPY to retest the previous day's low at 79.35 followed by the 79.00 horizontal support level.
AUD/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.