AUD/JPY Price Analysis: Settles above three-year high at 86.70
16.03.2022, 22:59

AUD/JPY Price Analysis: Settles above three-year high at 86.70

  • Aussie bulls are firmer post the breakout of an ascending triangle.
  • The asset holds above 20 and 200-period EMAs, which adds to the upside filters.
  • Bears can dictate levels if the asset slip below 84.60.

The AUD/JPY pair is auctioning above its three-year-old resistance at 86.70. The cross has formed a positive open drive session on Thursday as the aussie bulls witnessed carry-forward buying right from the first tick of the trading session.

On a weekly scale, AUD/JPY has given a breakout of an ascending triangle that signals a slippage in the standard deviation and indicates a balanced auction but with a positive bias. The upper end of the ascending triangle was marked from 14 May 2021 high at 85.80 while the lower end was placed from 30 October 2020 low at 73.14.

The 20-period and 200-period Exponential Moving Averages (EMA) at 83.16 and 80.36 respectively are scaling higher, which adds to the upside filters.

The Relative Strength Index (RSI) (14) has breached 60.00 from below, showing no signs of divergence and overbought. Holding above 60.00 levels indicates a bullish setup going forward.

For more upside, bulls need to violate Thursday’s high at 86.74, which will send the pair towards 9 February 2018 high at 87.51, followed by the round level at 88.00.

On the contrary, bulls can lose their control if the cross slips below March 15 low at 84.60, which will drag the pair to March 8 low at 83.80. Breach of the latter will send the cross to the round level at 83.00.

AUD/JPY weekly chart

 

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