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Technical Analysis – AUD/JPY drifts near a 4-month peak

AUD/JPY 15/04/19 | EconAlerts

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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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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