AUDJPY posted solid gains in recent sessions, continuing to recover after crashing in late February. The pair is now testing the 67.70 zone and crucially, a close above this region could turn the outlook back to neutral, from cautiously negative now. Something similar is being signaled by the 50-day simple moving average (SMA), which has started to flatten out.
Short term oscillators suggest that the recovery might continue for now. The RSI has popped above its 50 line and is pointing upwards, while the MACD – although negative – is moving higher alongside its red trigger line.
If buyers manage to secure a clear close above 67.70, the next target might be the intersection of the 69.15 area and the 50-day SMA. Another upside break would turn the focus to the 71.50 region, which halted the recovery in early March.
On the downside, if the bears retake control and prevent a close above 67.70, that would keep the outlook somewhat negative. In that case, another move lower could encounter support near 65.60, which was the inside swing high on March 20 and then acted as resistance on April 2. Even lower, the 64.35 area might be the next barrier.
In short, the picture is cautiously negative still, though a close above 67.70 could change that.
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