AUD/JPY returned to the June peak of 97.65 after a constructive week of strong gains. The RSI and Stochastic Oscillator warn that the recent rapid rise may not be permanent as the indicators are already testing their overbought levels. The price has been consistently closing above the upper Bollinger band in recent days. Still, if it manages to hold above the 96.65 level, the bulls could try to creep up to the 2022 high of 98.50. Even higher, the next stop could be in the restrictive zone of 99.25-99.65. If the price breaks below 96.65, it could find support somewhere between the simple moving averages (SMA) and the tentative uptrend line at 94.30. Hence, a close lower could encourage further selling, which would likely lead to an examination of the lower boundary of 92.85 and the 200-day SMA. If that too turns out to be fragile, the pair could drop to 91.85. AUD/JPY appears to be in danger of a bearish correction, but any downside move could appear limited if it manages to settle firmly around 96.65.
Article author: Instaforex team
Disclaimer: This information is provided to retail and professional clients as part of marketing communications. They do not and should not be construed as investment advice or investment recommendations, or an offer or solicitation to engage in any financial instrument transaction or strategy. Past performance is not a guarantee or prediction of future performance.
Instant Trading EU Ltd. assumes no responsibility for the accuracy or completeness of the information provided or for any loss resulting from any investment based on analysis, prediction or other information. Any business decision is always solely the independent and exclusive decision of the client.
Risk Warning: CFDs are complex instruments and, due to the use of financial leverage, are associated with a high risk of rapid financial loss. In 71.99% of retail investors’ accounts, a loss occurred when trading with CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford the high risk of losing your funds.
InstaForex is a securities trader with a long tradition, regulated by CySEC in the EU, which allows clients to trade more than 1000 investment instruments – CFDs, cryptocurrencies, ETFs, Currencies, Commodities, Indices and Shares on MT4 and MT5 platforms and Webtrader.
More information at: www.instaforex.eu/cz/