AUDJPY keeps roaring higher, hovering near the three-year high of 84.95 that was reached last month. The price structure of higher peaks and higher troughs remains uninterrupted, while the pair is also trading above all its simple moving averages (SMAs), keeping the overall picture positive.
That said, the short-term oscillators reflect some mixed signals. The price met resistance after touching its upper Bollinger band and the RSI has turned lower from 70, both suggesting that a pullback is possible in the immediate term. However, the MACD is positive and has just crossed above its red trigger line.
In case the latest retreat persists, immediate support could be found near the 82.80 zone. If violated, the next target for sellers may be the 82.00 region. Another move lower from there might raise questions about the health of the broader uptrend, turning the focus towards the 50-day SMA and the lower Bollinger band, both near 81.40.
Should the bulls retake control, their first test would be the recent peak of 84.95. If violated, all eyes would turn to 85.70, the inside swing low from August 2017. Another upside break could bring the 87.20 area into play, this being the swing low of January 2018. Higher still, the peak of January 2018 near 89.00 may prove to be a stronger resistance barrier.
In short, the big picture remains clearly positive, though a break below 82.00 might call that into question.
Written by Admin
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