Technical Analysis – AUDJPY is in retreat, but this correction could gain further strength
August 18, 2023 10:28 am
AUDJPY is enjoying another red candle, hovering inside the busy 92.78-93.63 range. The bears are staging the first significant pullback following the strong upward move that commenced in March 2023, breaking below the March 24, 2023 upward trend channel, while religiously observing the June 19, 2023 downward sloping trendline.
The momentum indicators are not yet supportive of the bears’ intentions despite this current downleg. The Average Directional Movement Index (ADX) seems uninterested in the recent move as it continues to point to a trendless market. However, both the RSI and the stochastic oscillator are trying to record lower lows and send bearish signals, which could potentially strengthen the current AUDJPY correction.
Should the bears remain confident, they would try to push AUDJPY below the 92.78-93.63 range and towards the equally important 91.39-91.70 area. This is populated by the 200-day simple moving average and the December 6, 2005 high. Even lower, the path remains tricky as the 90.29-90.62 region would probably prove tougher to crack than currently envisaged.
On the other hand, the bulls are desperate to put a stop to the current pullback. They seem keen on pushing AUDJPY above the current 92.78-93.63 range and then test the resistance set by the June 19, 2023 downward sloping trendline. If successful, they could then have a go at overcoming the 50-day SMA at 94.96, potentially opening the door to the January 23, 2007 high at 96.47.
To sum up, AUDJPY bears are staging a pullback but a barrage of supportive moves from the momentum indicators is needed for this move to snowball and push AUDJPY to record a lower low.
AUDJPY is enjoying another red candle, hovering inside the busy 92.78-93.63 range. The bears are staging the first significant pullback following the strong upward move that commenced in March 2023, breaking below the March 24, 2023 upward trend channel, while religiously observing the June 19, 2023 downward sloping trendline.
The momentum indicators are not yet supportive of the bears’ intentions despite this current downleg. The Average Directional Movement Index (ADX) seems uninterested in the recent move as it continues to point to a trendless market. However, both the RSI and the stochastic oscillator are trying to record lower lows and send bearish signals, which could potentially strengthen the current AUDJPY correction.
Should the bears remain confident, they would try to push AUDJPY below the 92.78-93.63 range and towards the equally important 91.39-91.70 area. This is populated by the 200-day simple moving average and the December 6, 2005 high. Even lower, the path remains tricky as the 90.29-90.62 region would probably prove tougher to crack than currently envisaged.
On the other hand, the bulls are desperate to put a stop to the current pullback. They seem keen on pushing AUDJPY above the current 92.78-93.63 range and then test the resistance set by the June 19, 2023 downward sloping trendline. If successful, they could then have a go at overcoming the 50-day SMA at 94.96, potentially opening the door to the January 23, 2007 high at 96.47.
To sum up, AUDJPY bears are staging a pullback but a barrage of supportive moves from the momentum indicators is needed for this move to snowball and push AUDJPY to record a lower low.
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