Technical Analysis – AUDJPY stands in the middle of medium-term sideways channel
August 7, 2018 2:26 pm
AUDJPY is trading in the middle of the trading range with upper boundary the 84.50 resistance level and lower boundary the 80.60 support, which has been holding since February 14. Also, the price stands within the 20- and 40-simple moving averages (SMAs) in the daily timeframe.
Technically, the Relative Strength Index (RSI) is approaching the positive area with weak momentum, while the MACD oscillator is flattening near its zero line, indicating a sideways movement.
If the market extends its gains above the 40-SMA the pair would challenge again the 83.90 resistance level. Next level to have in mind is the upper boundary (84.50) and in case of a break of this area would send prices until the 87.20 barrier, which is far away from the current market price. It is worth mentioning that if the price jumps sharply higher, this would endorse the scenario for a bullish retracement.
Conversely, a downside rally would drive the pair until the lower boundary (80.60). Steeper declines, though, could move AUDJPY south towards the 78.70 support.
In the medium-term, the outlook remains neutral as prices have failed to exit from the consolidation area and are hovering around the moving averages over the last few days.
AUDJPY is trading in the middle of the trading range with upper boundary the 84.50 resistance level and lower boundary the 80.60 support, which has been holding since February 14. Also, the price stands within the 20- and 40-simple moving averages (SMAs) in the daily timeframe.
Technically, the Relative Strength Index (RSI) is approaching the positive area with weak momentum, while the MACD oscillator is flattening near its zero line, indicating a sideways movement.
If the market extends its gains above the 40-SMA the pair would challenge again the 83.90 resistance level. Next level to have in mind is the upper boundary (84.50) and in case of a break of this area would send prices until the 87.20 barrier, which is far away from the current market price. It is worth mentioning that if the price jumps sharply higher, this would endorse the scenario for a bullish retracement.
Conversely, a downside rally would drive the pair until the lower boundary (80.60). Steeper declines, though, could move AUDJPY south towards the 78.70 support.
In the medium-term, the outlook remains neutral as prices have failed to exit from the consolidation area and are hovering around the moving averages over the last few days.
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