AUD/JPY drifts near a 4-month peak; turns bias to slightly bullish.
AUD/JPY advanced considerably on Friday, jumping above the sideways channel of 77.40 – 79.80 and posting a new four-month high around 80.50. Ichimoku indicators are raising neutral flags as the red Tenkan-Sen line is above the blue Kijun-Sen line but failed to signal a direction. On the other hand, the RSI and the stochastic are pointing down in the positive area, suggesting a bearish correction.
If prices decline, immediate support could be found around 79.80, an area which has provided as strong resistance in the preceding four months. Then a leg below that level, the pair could meet the 20-and 40-simple moving averages (SMA) currently at 79.00 in the daily timeframe. A step lower could find support at the 77.00 – 77.40 zone.
However, if the market manages to pick up speed, the 80.70 could offer nearby resistance ahead of the 83.90 level, identified by the peak on December 3.
In the long-term, the outlook remains negative since prices hold below all the long-term moving average lines. But in the short-term view, a significant climb above 83.90 could shift the bias to bullish.
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