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Technical Analysis – AUD/JPY in a sideways channel

AUD/JPY 07/08/18 | EconAlerts


AUD/JPY stands in the middle of a medium-term sideways channel.

AUD/JPY is trading in the middle of the trading range with upper boundary the 84.50 resistance level and lower boundary the 80.60 support, which has been holding since February 14. Also, the price stands within the 20- and 40-simple moving averages (SMAs) in the daily timeframe.

Technically, the Relative Strength Index (RSI) is approaching the positive area with weak momentum, while the MACD oscillator is flattening near its zero line, indicating a sideways movement.

If the market extends its gains above the 40-SMA the pair would challenge again the 83.90 resistance level. Next level to have in mind is the upper boundary (84.50) and in case of a break of this area would send prices until the 87.20 barrier, which is far away from the current market price. It is worth mentioning that if the price jumps sharply higher, this would endorse the scenario for a bullish retracement.

Conversely, a downside rally would drive the pair until the lower boundary (80.60). Steeper declines, though, could move AUD/JPY south towards the 78.70 support.

In the medium-term, the outlook remains neutral as prices have failed to exit from the consolidation area and are hovering around the moving averages over the last few days.

AUD/JPY 07/08/18 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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