AUDJPY is edging lower today as it tests the support set by the September 13, 2022 downward sloping trendline. This pair has been enjoying a medium-term bearish trend since the 98.50 high, but it has not been a one-way street. Actually, the bulls have managed to stage a decent rally since the March 24, 2023 low of 86.05, raising questions on the viability of the medium-term downleg.
The momentum indicators appear to be on the bulls’ side as theAverage Directional Movement Index (ADX) is pointing to a strong bullish trend. Similarly, the stochastic oscillator has moved above its moving average and seems to be heading for its overbought area.
Should the bulls maintain the market reins and manage to break the September 13, 2022 downward sloping trendline, their initial target would come at the 93.63 level set by the 23.6% Fibonacci retracement of the August 20, 2021 – September 13, 2022 downtrend. Higher, the April 20, 2022 high of 95.73 appears to be a good place for the bears to set up their defense.
On the other hand, the bears can remain somewhat confident as the AUDJPY pair has been recording a series of lower lows and lower highs; as such the pair’s next move is likely to be another lower low. Should this be the case, the bears would come up against the 23.6% Fibonacci retracement at 88.19. Lower, the busy 85.76 area could prove tougher to crack.
To conclude, AUDJPY bulls are trying to recover part of their losses, but the bears appear ready to reconfirm that they still hold the upper hand.
AUDJPY is edging lower today as it tests the support set by the September 13, 2022 downward sloping trendline. This pair has been enjoying a medium-term bearish trend since the 98.50 high, but it has not been a one-way street. Actually, the bulls have managed to stage a decent rally since the March 24, 2023 low of 86.05, raising questions on the viability of the medium-term downleg.
The momentum indicators appear to be on the bulls’ side as the Average Directional Movement Index (ADX) is pointing to a strong bullish trend. Similarly, the stochastic oscillator has moved above its moving average and seems to be heading for its overbought area.
Should the bulls maintain the market reins and manage to break the September 13, 2022 downward sloping trendline, their initial target would come at the 93.63 level set by the 23.6% Fibonacci retracement of the August 20, 2021 – September 13, 2022 downtrend. Higher, the April 20, 2022 high of 95.73 appears to be a good place for the bears to set up their defense.
On the other hand, the bears can remain somewhat confident as the AUDJPY pair has been recording a series of lower lows and lower highs; as such the pair’s next move is likely to be another lower low. Should this be the case, the bears would come up against the 23.6% Fibonacci retracement at 88.19. Lower, the busy 85.76 area could prove tougher to crack.
To conclude, AUDJPY bulls are trying to recover part of their losses, but the bears appear ready to reconfirm that they still hold the upper hand.
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