AUDJPY has been stuck in a narrow sideways range, with an upper bound at 79.80 and a lower bound at 77.40, since early January. In light of this, the short-term picture is neutral, with a break on either side of this range needed to provide the broader directional bias.
Both the RSI and the MACD are also hovering near their neutral levels, serving testament to the sideways tendency.
In case of further declines, support may be found near the lower end of the range, at 77.40. If the bears manage to violate that, it would mark a lower low, turning the short-term bias negative and opening the door for a test of 76.10 – a zone marked by the September 2016 lows.
If on the other hand the bulls take the reins, advances could stall initially at 79.80. A clear break above that area would turn the short-term outlook to positive, paving the way for buyers to challenge the crossroads of the 80.70 territory and the 200-day simple moving average (SMA), at 80.85.
In short, the picture is currently neutral, with a break above 79.80 needed to turn it positive, or a move below 77.40 to shift it to negative.
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