- AUD/JPY faces rejection near key moving average hurdle.
- The pair is forming a head-and-shoulders (H&S) pattern on the hourly chart.
AUD/JPY is trading near 68.90, representing a 0.30% decline on the day, having faced rejection near the descending or bearish 50-day average hurdle at 69.16.
While the broader trend looks bullish with higher lows and higher highs on the daily chart and above-50 reading on the 14-day relative strength index, a convincing breakout above the 50-day average will likely remain elusive for some time, as the 4-hour chart is reporting a bearish divergence.
Further, the pair appears to be forming a head-and-shoulders pattern on the hourly chart. A break below 68.58, the neckline support, would open the doors to 67.90 (target as per the measured move method).
The bearish case put forward by the hourly and 4-hour charts would weaken if the JPY cross prints a daily close above 69.26.
Hourly chart
-637225095763909461.png)
Trend: Pullback likely
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD steadies despite rising US inflation, traders eye Aussie WPI
The Australian Dollar registered gains against the US Dollar on Tuesday, even though inflation in the United States edged, spurring hawkish remarks by Fed Chair Jerome Powell. The AUD/USD trades near 0.6624, virtually unchanged as Wednesday’s Asian session commences.
EUR/USD targets the 1.0880 zone ahead of US, EMU data
EUR/USD kept the bullish bias well in place for the second session in a row, leaving behind the 1.0800 barrier and the key 200-day SMA (1.0790) prior to key data releases in the EMU and US on Wednesday.
Gold price firmer amid mixed US PPI data, Fed’s uncertain on inflation
Gold prices climbed past the $2,359 figure on Tuesday after data released by the US Department of Labor revealed that factory gate inflation rose above estimates, signaling that prices remained elevated. Despite that, US Treasury yields are sliding, a headwind for the Greenback.
Ethereum bears attempt to take lead following increased odds for a spot ETH ETF denial
Ethereum is indicating signs of a bearish move on Tuesday as it is largely trading horizontally. Its co-founder Vitalik Buterin has also proposed a new type of gas fee structure, while the chances of the SEC approving a spot ETH ETF decrease with every passing day.
Is the US Dollar headed for a crash?
Ahead of the US CPI & Retail Sales report, I breakdown how to combine forex fundamentals with technicals to determine whether we've seen a US dollar top?