AUD/JPY Price Analysis: Steady in consolidation around the 83.00 – 83.50 range

AUD/JPY reaches a fresh three-month high around the 83.50 range.
On Monday, the cross-currency broke the 200-day moving average, suggesting upside bias prevails.
AUD/JPY: The daily chart depicts that the pair might consolidate or correct lower before resuming the uptrend.

Christian Borjon Valencia FXStreet

The AUD/JPY is trading lower as the Asian session kicks in and is trading at 83.34, barely down 0.06%, during the day at the time of writing. The market mood is mixed, as depicted by Asian equity futures, split between gainers and losers.

AUD/JPY Price Forecast: Technical outlook

Daily chart

On Monday, the AUD/JPY reached 83.56 (the middle of the Andrew Pitchfork channel) but found intense selling pressure, retreating towards 83.24. A breach of the latter could accelerate an upside move towards the July 6 high at 84.19, but oversold levels at the Relative Strength Index (RSI) at 71, suggests the pair could be headed for a correction towards the 200-day moving average (DMA) at 82.37, before resuming a move towards higher prices. Nevertheless, in case of a push below the 200-DMA, the September 3 high at 82.02 will be the next support before reaching the 100-DMA at 81.83.

1-hour chart

The AUD/JPY is trading within a narrow range between 83.00-83.55. A break above the top of the range could open the way towards a re-test of the Monday high at 83.55. However, the Relative Strength Index is in oversold levels at 71, suggesting that an upside move could be capped at those levels. Failure to an upside break could signal that consolidation or a correction could lie ahead for the AUD/JPY in the near term.

On the flip side, a break beneath the bottom level will find the daily pivot at 82.87 as the first support level. A breach beneath the latter would exert downward pressure on the pair towards the confluence of the 50-simple moving average (SMA) and the S1 pivot level around the 82.33-82.18 area.

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD flirts with two-day lows near 1.3180

GBP/USD remains on the back foot in the latter part of Tuesday’s session, sliding to the sub-1.3200 area and challenging weekly lows. Cable’s decline comes as investors assess the political uncertainty in the UK, coupled with softer-than-expected UK PMI data and the better tone in the Greenback.

EUR/USD weakens below 1.1400 on stronger Dollar

EUR/USD adds to Monday’s losses and recedes below the 1.1400 support to clinch fresh 13-month lows in the latter part of Tuesday’s NA session. The pair’s marked sell-off comes on the back of the persistent move higher in th US Dollar, always propped up by rising bets of further tightening by the Fed.

Gold loses ground to near $4,100 as inflation concerns, Fed rate hike bets build

Gold price loses momentum to around $4,100 during the early Asian session on Wednesday. The precious metal extends the decline as traders cement views on the US Federal Reserve hiking interest rates this year.

Australia CPI set to show inflation accelerated again in May

The Australian Bureau of Statistics will publish the high-impact Consumer Price Index for May on Wednesday at 01:30 GMT. Heading into the inflation test, the Australian Dollar is at its lowest level in two months against the US Dollar, having surrendered the 0.7000 psychological mark.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.