News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDdK93P https://t.co/ZE0Hgn9PCM
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/GFx3b1W0OD
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment. https://t.co/C7DHnPIeuU https://t.co/K2835aP57Z
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi4143uT https://t.co/zTpqrFIZfk
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
  • RBNZ: - Vaccination program has aided a stronger-than-expected rebound in the global economy - Demand for our exports has fared better than previous recessions
  • Between the volatile risk trend picture at the moment along with the Fed rate decision and expected 100bp hike from the Brazilian central bank both on Wednesday, $USDBRL is going to be a very interesting pair to watch...
  • RT @EricBalchunas: $SPY traded more than the Top 5 stocks combined. Just when you think $SPY is fading away like an aging legend you realiz…
  • Bitcoin sharply lower on the day, but well off session lows around $42,500 $BTCUSD #Bitcoin https://t.co/mPiZMs8eYH
  • You know what index didn't suffer an overtly threatening reversal this past session? The Russell 2000. It didn't continue the same steady climb through 2021 that the Dow, SPX and Nasdaq enjoyed; so not as much excess premium https://t.co/ieHojAC7b5
Australian Dollar Price Forecast: Will AUD/JPY Repeat its Failure?

Australian Dollar Price Forecast: Will AUD/JPY Repeat its Failure?

Mahmoud Alkudsi, Analyst

Aussie Dollar vs Japanese Yen Technical Outlook

  • Bears ease up yet still in charge
  • AUD/JPY faces a key resistance level

Stalled Bearish Momentum

On March 31, the price created a lower high at 65.58 indicating that bearish momentum was still intact. Later on, the price closed the weekly candlestick on Friday in the red with 2.3% loss.

Alongside that, the Relative Strength Index (RSI) remained flat below 50, signalling a paused downtrend move.

AUD/JPY DAILY PRICE CHART (JUn 11, 2018 – April 8, 2020) Zoomed Out

AUDJPY daily price chart 08-04-20 zoomed out

AUD/JPY DAILY PRICE CHART (SEP 1 – April 8, 2020) Zoomed IN

AUDJPY daily price chart 08-04-20 zoomed in

Looking at the daily chart, we noticed that on March 20 AUD/JPY climbed to current traded zone 64.08 – 67.18. Since then, the price has failed in multiple occasions to rally off the zone.

Thus, another failure in closing above the high end could reverse the pair’s direction towards the low end of the zone. Further close below that level may encourage bears to push towards 61.67. In that scenario, the weekly support area underscored on the chart should be considered.

On the flip-side, any successful close above the high end of the zone may cause a rally towards 70.21. Further close above that level could extend the rally towards 71.87. Having said that, the weekly resistance levels and area marked on the chart (zoomed in) should be watched closely.

AUD/JPY Four-Hour PRICE CHART (FEb 11– April 8, 2020)

AUDJPY Four hour chart 08-04-20

From the four- hour chart, we noticed that on March 23 AUD/JPY rallied above the downtrend line originated from the March 11 high at 68.79. On Tuesday, the price broke above the downtrend line originated from the March 25 high 67.70 and currently eyes a test of 69.27.

A break above 68.23 would be considered as an additional bullish signal. This increases the likelihood of AUDJPY testing 69.27. Yet, the psychological resistance level underlined on the chart should be kept in focus. In turn, any break in the other direction i.e. below 65.57 could send the price towards 64.38 . Although, the daily support level printed on the chart should be monitored.

See the chart to find out more about key levels Cable would encounter in a further bearish /bullish scenario.

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES