- AUD/JPY reaches a fresh three-month high around the 83.50 range.
- On Monday, the cross-currency broke the 200-day moving average, suggesting upside bias prevails.
- AUD/JPY: The daily chart depicts that the pair might consolidate or correct lower before resuming the uptrend.
The AUD/JPY is trading lower as the Asian session kicks in and is trading at 83.34, barely down 0.06%, during the day at the time of writing. The market mood is mixed, as depicted by Asian equity futures, split between gainers and losers.
AUD/JPY Price Forecast: Technical outlook
Daily chart
On Monday, the AUD/JPY reached 83.56 (the middle of the Andrew Pitchfork channel) but found intense selling pressure, retreating towards 83.24. A breach of the latter could accelerate an upside move towards the July 6 high at 84.19, but oversold levels at the Relative Strength Index (RSI) at 71, suggests the pair could be headed for a correction towards the 200-day moving average (DMA) at 82.37, before resuming a move towards higher prices. Nevertheless, in case of a push below the 200-DMA, the September 3 high at 82.02 will be the next support before reaching the 100-DMA at 81.83.
1-hour chart
The AUD/JPY is trading within a narrow range between 83.00-83.55. A break above the top of the range could open the way towards a re-test of the Monday high at 83.55. However, the Relative Strength Index is in oversold levels at 71, suggesting that an upside move could be capped at those levels. Failure to an upside break could signal that consolidation or a correction could lie ahead for the AUD/JPY in the near term.
On the flip side, a break beneath the bottom level will find the daily pivot at 82.87 as the first support level. A breach beneath the latter would exert downward pressure on the pair towards the confluence of the 50-simple moving average (SMA) and the S1 pivot level around the 82.33-82.18 area.
