AUD/JPY Price Analysis: Yen performance fuels continued uptrend, pair stretches above 108.00
- AUD/JPY strengthens its position, touching new peaks beyond 108.00.
- Overbought conditions could trigger a healthy correction, yet the outlook reveals a continuation of momentum.
In Wednesday's session, the AUD/JPY pair elongated its upward trajectory, reaching new high points around 108.40, hence beating its record once again after crossing its 2007 highs of around 107.30.
On a daily scale, the Relative Strength Index (RSI) for the AUDJPY settled at 80 and it concurrently flags the pair as overbought, which may provoke a downward correction. Parallely, the Moving Average Convergence Divergence (MACD) depicts growing green bars, signifying stubborn bullish momentum, although a correction seems likely given the overbought situation.
AUD/JPY daily chart
In the broader perspective, the AUD/JPY pair exhibits relentless bullish behaviors, fortified by its standing above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). Should the pair face a correction pulling it beneath the 108.00 level, followed by the 107.00 mark, it could discover new support levels. Thus, the 104.90 (20-day SMA) level may act as another potential support line. Meanwhile, buyers will investigate unexplored grounds should the pair stay on its current course and surpass the 108.50 level.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
