AUD/JPY traded lower yesterday, after hitting resistance at 85.50. However, the retreat was stopped near the 83.90 barrier, marked by the inside swing peak of February 10th, still above the upside support line drawn from the low of January 28th. Therefore, we will class the retreat as a corrective phase of the broader upside path.
Even if the setback continues for a while more, below 83.90, we could see the bulls taking charge from near the aforementioned upside line. This could result in an advance back near the 84.85 barrier, marked by today’s current high. If they don’t stop there, we may see them climbing towards the 85.50 hurdle, marked by the high of March 7th. Another break, above that hurdle, will confirm a forthcoming higher high and may see scope for advances towards the 86.05 or 86.23 levels, marked by the high of November 1st and October 21st.
Taking a look at our short-term oscillators, we see that the RSI hit its 50 line from underneath and ticked down again, while the MACD, although positive, lies below its trigger line, pointing south as well. Both indicators add to the view that yesterday’s retreat may continue for a while more before, and if, the bulls decide to take charge again.
The outlook could turn bearish upon a break below 82.75, a support marked by the low of February 28th. This could pave the way towards the 82.20 or 82.00 barriers, with the latter marked by the low of February 24th. If the bears are not willing to surrender near those levels, then we may experience extensions towards the low of February 14th, at 81.55, or the low of February 4th, at 81.30. Slightly lower lies the low of February 1st, at 80.90, which could also get tested.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.82% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.