AUD/JPY Price Analysis: Bulls Eye Recovery
The AUD/JPY pair is showing signs of recovery as short-term momentum shifts, offering a cautiously optimistic outlook for bulls.
Key Takeaways:
- Current Trading: AUD/JPY is trading near the 94.70 area, showing strong gains.
- Technical Outlook: Mixed signals with short-term momentum improving but longer-term pressure remains.
- Key Levels: Resistance lies above 95.00, with support near 93.80 and the 20-day SMA around 93.50.
Technical Analysis
The AUD/JPY pair has been trading around the 94.70 zone, recovering from recent weakness. Price action suggests renewed buyer interest, but technical indicators provide a nuanced view.
Momentum Indicators:
- Relative Strength Index (RSI): Climbed sharply into positive territory, indicating increasing bullish momentum.
- Moving Average Convergence Divergence (MACD): Prints flat green bars, suggesting a tentative shift towards the upside.
- Oscillators: Most remain neutral, underscoring the fragile nature of the recovery.
Moving Averages:
- Short-term Simple Moving Averages (SMAs) tilt bullish, supporting the upward move.
- Longer-term averages remain tilted to the downside, posing resistance.
Trading Strategy
A break above the 95.00 psychological level is crucial for bulls to consolidate control. Key support and resistance levels to watch include:
| Level | Description |
|---|---|
| Resistance | Above 95.00 |
| Support | Initial support around 93.80, followed by the 20-day SMA near 93.50 |
AUD/JPY Daily Chart
Disclaimer: Information contained herein is not investment advice. Conduct thorough research before making any investment decisions. Investing involves risk of loss.