- The daily chart reveals an overall positive trend but indicators took a big hit on Friday.
- The hourly RSI hints at a possible short-term upswing following a plunge into the oversold territory.
- The pair might side-ways trade to consolidate Friday’s movements..
The AUD/JPY pair is currently trading at 98.60, showing a substantial decrease of nearly 1%. Despite this decline, the broader trend continues to show positivity, with bulls maintaining their control. In addition, as the downward movements might be over-extended, the pair may enter a consolidation phase.
On the daily chart, the technical outlook for the AUD/JPY pair suggests a positive trend. The latest Relative Strength Index (RSI) reading resides in the positive territory, aligning with the recent upward momentum. Having peaked near overbought conditions earlier in the week, the RSI has now pulled back to a moderate level, pointing towards potential consolidation. Concurrently, the Moving Average Convergence Divergence (MACD) paints a contrasting picture, showing decreasing green bars that signify a slowdown in positive market momentum.
AUD/JPY daily chart
Switching to the hourly chart, the last session's RSI plunged deep into the oversold territory, which could hint at a potential short-term correction upwards. Despite the sharp drop in the RSI, the MACD histogram displays flat green bars, implying stagnating bullish momentum on hourly timeframes.
AUD/JPY hourly chart
The next target for the sellers is the 20-day Simple Moving Average (SMA) at 98.10. Below that the 100 and 200-day SMAs will act as strong supports in case the downside pressure persists but if the bulls defend this level, the overall trend will remain positive.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0800 ahead of US payrolls
EUR/USD is consolidating gains above 1.0800 in the European session on Friday. The pair holds its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
GBP/USD stays firm above 1.2750 after a landslide Labour victory
GBP/USD keeps its range above 1.2750 in early European session on Friday. The Pound Sterling stays unperturbed by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
Gold continues positive run as investors foresee lower interest rates
Gold rises on Friday, continuing its run of positive days as investors become increasingly optimistic the Fed will lower interest rates sooner than previously thought, and the US Dollar softens, adding a lift to Gold which is predominantly bought and sold in Dollars.
Bitcoin falls below $56,000 level
BTC breached the weekly support level of $58,375 on Thursday; as of Friday, it is trading 2.8% lower at $55,314. ETH and XRP have dropped below crucial support thresholds.
Nonfarm Payrolls forecast to grow by 190K in June as Fed ponders rate-cut timing
With US Federal Reserve Chairman Jerome Powell’s Sintra appearance out of the way, all eyes now remain on top-tier Nonfarm Payrolls data for June, due on Friday at 12:30 GMT.