AUD/JPY Recovers After Failing to Close Below 50-Day SMA
AUD/JPY appears to be on track to test the monthly high (100.81) following the failed attempt to close below the 50-Day SMA (98.14).
AUD/JPY Rate Outlook
AUD/JPY may track the positive slope in the moving average as it extends the rebound from the monthly low (97.78), with a break/close above 100.90 (38.2% Fibonacci extension) bringing the December 2014 high (101.37) on the radar.
Next area of interest comes in around the November 2014 high (102.85) but failure to clear the monthly high (100.81) may pull AUD/JPY back towards the 98.77 (2022 high) to 99.00 (61.8% Fibonacci extension) region, with a breach below the moving average raising the scope for a test of the monthly low (97.78).
--- Written by David Song, Strategist at FOREX.com
AUD/JPY Rate Outlook
AUD/JPY may track the positive slope in the moving average as it extends the rebound from the monthly low (97.78), with a break/close above 100.90 (38.2% Fibonacci extension) bringing the December 2014 high (101.37) on the radar.
Next area of interest comes in around the November 2014 high (102.85) but failure to clear the monthly high (100.81) may pull AUD/JPY back towards the 98.77 (2022 high) to 99.00 (61.8% Fibonacci extension) region, with a breach below the moving average raising the scope for a test of the monthly low (97.78).
--- Written by David Song, Strategist at FOREX.com
AUD/JPY extends the advance from the start of the week to push the Relative Strength Index (RSI) towards overbought territory.
AUD/JPY appears to be on track to test the yearly high (104.96) as it breaks above the opening range for May, with a move above 70 in the RSI likely to be accompanied by a further advance in the exchange rate like the price action from earlier this year.
A breach above the April high (104.96) may push AUD/JPY towards the 105.43 (April 2013 high) to 105.50 (50% Fibonacci extension) region, with the next area of interest coming in around the November 2007 high (107.79).
However, failure to test the yearly high (104.96) may keep the RSI out of overbought territory, with a move below the 100.90 (38.2% Fibonacci extension) to 101.37 (December 2014 high) area raising the scope for a test for a monthly low (99.93).
--- Written by David Song, Strategist at FOREX.com