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.

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
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Bitcoin Tumbles Amid Xinjiang Blackout, Possible US Treasury Investigation - https://www.dailyfx.com/forex/market_alert/2021/04/19/Bitcoin-Tumbles-Amid-Xinjiang-Blackout-Possible-US-Treasury-Investigation.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $BTC https://t.co/zs4eQVrKEP
  • 🇯🇵 Balance of Trade (MAR) Actual: ¥663.7B Expected: ¥490B Previous: ¥215.9B https://www.dailyfx.com/economic-calendar#2021-04-18
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8yG5lv https://t.co/j7No5uPhYF
  • 9 out of 11 S&P 500 sectors ended higher, with 70.9% of the index’s constituents closing in the green. Materials (+1.18%), utilities (+0.81%) and consumer discretionary (+0.78%) were among the best performers, while energy (-0.90%) and information technology (-0.03%) lagged. https://t.co/2qbzKRyx2B
  • 9 out of 11 S&P 500 sectors ended higher, with 70.9% of the index’s constituents closing in the green. Materials (+1.18%), utilities (+0.81%) and consumer discretionary (+0.78%) were among the best performers, while energy (-0.90%) and information technology (-0.03%) lagged. https://t.co/uAt7OhZvYM
  • There's no question about it, trading brings about much emotion. Knowing how to control emotions while trading can prove to be the difference between success and failure. Learn more about managing emotion in trading here: https://t.co/FC7CHp2y70 https://t.co/UvcEzMKGmI
  • What are some key takeaways for trading gold? Get your free insight here: https://t.co/lnxaQOsgid https://t.co/GOBTKkCEKh
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET (12:30GMT) on DailyFX - https://t.co/lxd5fZ5LG7 Mid-Weekly Technical Update on Wednesday at 9:30am ET (13:30GMT) with IG - https://t.co/8SFBJxwo30
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here: https://t.co/1ZR5OCfY3u https://t.co/NMiJrp6wmP
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtoQJgE https://t.co/RT9Z4K8xCy
Australian Dollar Forecast: Reversal Signals on AUD/JPY Price Chart

Australian Dollar Forecast: Reversal Signals on AUD/JPY Price Chart

Mahmoud Alkudsi, Analyst

Aussie Dollar vs Japanese Yen Technical Forecast

  • Bulls momentum has eased, but the bias higher
  • AUD/JPY price chart highlights a possible reversal on the horizon

A Multi-Month High

Last week, AUD/JPY hit an over 14-month high of 76.87. However, the price retreated after as some bulls seemed to cut back. Ultimately, a weekly candlestick closed modestly in the green with a 0.7% gain.

Alongside that, the Relative Strength Index (RSI) fell from 70 to 57 highlighting that bulls were losing momentum.

AUD/JPY DAILY PRICE CHART (JUn 1, 2018 – July 29, 2020) Zoomed Out

AUDJPY daily price chart 29-07-20 zoomed out

AUD/JPY DAILY PRICE CHART (APRIL 14 – July 29, 2020) Zoomed IN

AUDJPY daily price chart zoomed in 29-07-20

On July 21, AUD/JPY climbed to the current 75.27 -77.37 trading zone. However, the price declined after and tested the low end of the zone twice highlighting a weaker bullish sentiment.

It’s important to note the price and RSI divergence as the former created a higher high, while the latter created a lower high, signaling a possible reversal of the upward trend.

A daily close below the low end of the current trading zone could send AUDJPY towards the neckline of a Double Top pattern (a reversal pattern) residing at 72.53.

On the other hand, a failure in closing below the low end of the zone may encourage bulls to rally the price towards the monthly resistance at 77.37 (February 2019 low).

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

AUD/JPY FOUR-HOUR PRICE CHART (JULY 14 – JULY 29, 2020)

AUDJPY Four hour chart 29-07-20

Yesterday, EUR/USD failed to break below the bullish trendline support originated from the July 14 low at 74.24 indicating that bullish momentum remained intact.

To conclude, while the bullish bias is still in place the price/RSI divergence provides a good base of a possible reversal. Therefore, a break below the 75.00 threshold – a psychological trading level – could send AUD/JPY towards 74.68, while, a break above 75.61 may trigger a rally towards 76.00 handle. As such, the support and resistance levels underscored on the four-hour chart should be kept in focus.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

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