Technical Analysis – AUDJPY slips again in choppy trade, breaches moving averages
May 11, 2023 3:27 pm
AUDJPY has come under fresh selling pressure after a succession of three higher highs over the last couple of months. The last one took the pair’s retracement of the September 2022 – March 2023 downtrend to the 50% Fibonacci level, peaking at 92.42. However, despite falling back and then rebounding, AUDJPY is on the slide again, slipping below the converging 20- and 100-day simple moving averages (SMA) in the 90.15 region today.
The momentum indicators are painting a mixed picture for the near-term bias. The RSI has declined to its 50 neutral level but has yet to close below it, while the MACD is so far holding above its red signal line and remains far above zero.
Should the pair extend its losses, the 50-day SMA could next be tested by the bears at 89.25. Further down, the April 26 low of 87.86 could prove to be an important support again.
However, in the event of a renewed bullish attempt, AUDJPY could re-challenge the May 8 peak of 91.86 before aiming for the last higher high of 92.42. Were this to evolve into a new upward wave, the 61.8% Fibonacci of 93.74 would be a likely resting spot for the bulls.
To sum up, AUDJPY’s recovery from the March trough remains very choppy and there’s no sign yet that this latest pullback is anything other than a short-term correction. However, with the 200-day SMA recently closing in on the price action, the upward trend may be entering a more difficult phase.
AUDJPY has come under fresh selling pressure after a succession of three higher highs over the last couple of months. The last one took the pair’s retracement of the September 2022 – March 2023 downtrend to the 50% Fibonacci level, peaking at 92.42. However, despite falling back and then rebounding, AUDJPY is on the slide again, slipping below the converging 20- and 100-day simple moving averages (SMA) in the 90.15 region today.
The momentum indicators are painting a mixed picture for the near-term bias. The RSI has declined to its 50 neutral level but has yet to close below it, while the MACD is so far holding above its red signal line and remains far above zero.
Should the pair extend its losses, the 50-day SMA could next be tested by the bears at 89.25. Further down, the April 26 low of 87.86 could prove to be an important support again.
However, in the event of a renewed bullish attempt, AUDJPY could re-challenge the May 8 peak of 91.86 before aiming for the last higher high of 92.42. Were this to evolve into a new upward wave, the 61.8% Fibonacci of 93.74 would be a likely resting spot for the bulls.
To sum up, AUDJPY’s recovery from the March trough remains very choppy and there’s no sign yet that this latest pullback is anything other than a short-term correction. However, with the 200-day SMA recently closing in on the price action, the upward trend may be entering a more difficult phase.
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