AUDJPY continues its steady march higher. The structure of higher peaks and higher troughs remains intact since October, while the pair is also trading above all of its moving averages (MAs), a combination that keeps the broader outlook positive.
That said, the momentum oscillators warn of a potential pullback after the price encountered resistance near the two-year top of 82.40. The RSI has just dipped below its 70 zone, while the MACD could cross below its red trigger line soon.
Should the bears stay in control, initial support could come from the 80.70 area, which also encompasses the 20-day MA. Crossing below this zone, sellers could face a tougher barrier near the 79.50 territory and the 50-day MA currently at 79.75. If this is violated too, doubts around the health of the broader uptrend could arise, opening the door for a test of 78.80 next.
Now if buyers retake the wheel and manage to pierce above 82.40, their next target could be the December 2018 high of 83.80. Powering higher, the top from May-June 2018 near 84.50 could provide resistance, before the 85.70 region comes into play, this being the inside swing low of August 2017.
In short, the big picture is overwhelmingly positive, though a decisive dip below 79.50 could spark some concerns.
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