AUD/JPY: testing the resistance

AUD/JPY: testing the resistance

2019-12-18 • Updated

Long-term

From the very beginning of 2018, the overall direction of AUD/JPY was a decline. On the weekly chart, this downtrend is visible, with the 50-week Moving Average serving as the resistance. Since then, the price has tested that resistance two times. Now, we are observing the third time. Therefore, the question is: will it be just another such time or a start of the long-term trend change.

AUDJPYWeekly.png

Mid-term

Recently, the price came close to the resistance level of 76.00, which is a 6-months high. On the daily chart, it did the same in November but then dropped. Now, as it is testing the 200-day Moving Average being already above the 50-day and 100-day MAs, it is likely to go into consolidation at the present level.

In fact, we are observing a collision of the 2-years downtrend and the 6-months uptrend. For this reason, whatever the outcome, climbing further up will be difficult, and the price will have to fight its way to actually break through the 200-day Moving Average and the resistance level of 76.00. If it does, we will see a new large trend emerging.  

AUDJPYDaily.png

Short-term

In the course of the abovementioned mid-term consolidation, the price is likely to drop to the area of 74.50. That is approximately where the local 1-week downtrend will cross the 6-months uptrend and the 200-period and 100-period MAs. If the price drops below the mentioned Moving Averages, it should be for a relatively short period of time.

The local downtrend is also confirmed by the reading of the Awesome Oscillator, which just crossed the zero-line downwards after two descending consecutive peaks.

AUDJPYH4.png

Overall

In the short-term, the price shows signs of continuing the downward trend. In the mid-term, we are likely to see consolidation. In the long-term – we have to wait to see the overall trend being broken or continued further.

To understand the factors behind the AUD/JPY price movements, read the news and examine the fundamentals for this currency pair.

                                                                                          LOG IN

Similar

Nasdaq 100 (US100): Toward 17750
Nasdaq 100 (US100): Toward 17750

Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.

Latest news

US100: Has the correction ended?
US100: Has the correction ended?

Bullish Scenario: Buys above 17910 with TP:18098.07, TP2:18277, and TP3: 18415 Bearish Scenario: Sells below 17850 with TP1:17730, TP2: 17700

Stocks To Watch For March
Stocks To Watch For March

During his program on CNBC on February 28, Jim Cramer expressed frustration with the impact of earnings reports on market behavior, noting how they often prompt rash decisions by average investors. He criticized the short-term focus and lack of attention to nuance in news coverage of earnings. Cramer cited examples of Home Depot and Lowe's, highlighting how investors reacted hastily to headline news without considering the broader context provided in earnings calls.

Nasdaq, S&P 500 Reach Record Highs
Nasdaq, S&P 500 Reach Record Highs

After creating record highs, Wall Street's main indexes opened on Wednesday and began to edge lower, reflecting cautious sentiment among investors. They're eagerly awaiting crucial inflation data that could impact the U.S. Federal Reserve's interest rate decisions. The upcoming release of the personal consumption expenditures (PCE) price index is expected...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera