AUDJPY’s Growing Bullish Bias is Under Microscope

Technical analysis of Forex market

AUDJPY’s fresh minor pullback from 83.42 has found some footing off the blue Kijun-sen line at 82.78 keeping the latest outlook bullish as the pair continues to plot higher highs and lows. The rising 50- and 100-period simple moving averages (SMAs) are backing the one-month uptrend from 78.76. Furthermore, the 100-period SMA at 81.63 looks set to complete a bullish crossover of the flattened 200-period SMA at 81.86, which would add credibility to the rally.

The Ichimoku lines are indicating a slight pause in the upward drive, while the short-term oscillators are reflecting that buyers are slowly regaining their feet. The MACD is showing some waning in positive momentum but remains some distance above zero. The RSI is crawling back up in the bullish region and the stochastic oscillator’s positive charge is promoting more positive price action.

To the upside, buyers need to overstep the immediate resistance band of 83.23-83.42 to reinstate upward impetus. Successfully doing so, the bulls could pursue the 83.90-84.15 resistance area, containing multiple highs from November. Should additional gains unfold, the bulls may then confront the 84.48 barrier before piloting towards the 85.20 high, achieved on November 4.

Otherwise, if the immediate resistance obstacle curbs the rally’s progress, prompt support could emanate from the nearby 82.78 and 82.48 lows respectively. Now, in the event a deeper retracement develops, a critical section between the 50-period SMA at 82.12 and the 100-period SMA at 81.63 could prove hard to dive past. That said, if negative pressures triumph, sellers may aim for the 81.25 trough and the 81.00 handle.

Summarizing, AUDJPY’s bullish tone remains intact as long as the price persists above the 82.48 low and the SMAs.