Market news
20.03.2024, 21:12

AUD/JPY Price Analysis: Bulls maintain positive momentum, overbought conditions hint at possible pullback

  • The daily chart analysis reveals consistent bullish sentiment with RSI nearing overbought conditions, indicating possible pullbacks.
  • The AUD/JPY hourly chart paints a similar picture, with the RSI deep in overbought terrain.
  • Even with a potential short-term bearish correction, the AUD/JPY standing above SMA shows an overall bullish trend.

In Wednesday's session, AUD/JPY is experiencing an uptake, trading at 99.62, its highest level since 2014, and showing a gain of 1.15%. Although there are hints of a short-term consolidation incoming, any downward movements could be considered as a mere technical correction.

Based on the indicators of the daily chart for the AUD/JPY pair, a positive trend is seen, as indicated by the positive territory of the Relative Strength Index (RSI). The RSI is nearing the overbought territory, signaling that while the trend is bullish, an increasing risk of a pullback due to overbought conditions is also present. In agreement with this, the Moving Average Convergence Divergence (MACD) histogram also reveals a rising trend, indicated by green bars, corroborating the positive momentum.

AUD/JPY daily chart

Contrarily, on the hourly chart, the AUD/JPY pair shows a sharp move into the overbought territory, as indicated by the RSI of 78. This demonstrates that the pair might face a corrective pullback in the short term given these extreme over-extended conditions. The MACD histogram also confirms this, as it continues to print green bars.

AUD/JPY hourly chart

These observations generally point towards bullish conditions for the AUD/JPY pair in the short term but buyers might consider taking profits in the next sessions. On a broader perspective, buyers are also in command as the pair trades above the 20,100 and 200-day Simple Moving Averages (SMAs).

AUD/JPY

Overview
Today last price 99.62
Today Daily Change 1.08
Today Daily Change % 1.10
Today daily open 98.54
 
Trends
Daily SMA20 97.98
Daily SMA50 97.54
Daily SMA100 97.19
Daily SMA200 96.04
 
Levels
Previous Daily High 98.61
Previous Daily Low 97.58
Previous Weekly High 97.97
Previous Weekly Low 96.9
Previous Monthly High 99.06
Previous Monthly Low 95.5
Daily Fibonacci 38.2% 98.22
Daily Fibonacci 61.8% 97.98
Daily Pivot Point S1 97.88
Daily Pivot Point S2 97.21
Daily Pivot Point S3 96.84
Daily Pivot Point R1 98.91
Daily Pivot Point R2 99.28
Daily Pivot Point R3 99.94

 

 

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