AUD/JPY Price Analysis: Bulls maintain a positive stride, potential shift remains possible

Source Fxstreet
May 27, 2024 21:23
  • Daily chart indicators depict a steady buying traction with RSI deep in positive area , but nearing overbought conditions.
  • On the hourly chart indicators are beginning to flatten, which suggests the cross may face some losses ahead of the Asian session.
  • Given the heightened momentum, the stage could be set for a shift in market dominance, suggesting a potential correction on the horizon.

In Monday's session, the AUD/JPY pair managed to acquire supplementary momentum and saw some gains. Despite the strength of the buying momentum, the market may be heading for a correction since the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) hint at overbought levels. Ahead of the Asian session, with the pair nearing cyclical peaks, an incoming pullback for the cross may be on the horizon.

Examining the daily chart, the RSI is near the overbought territory. A gradual decrease from overbought conditions is evident while maintaining a positive trend, indicating buyers' dominance but hinting at a potential flattening. In line with that, the MACD shows a negative momentum as red bars are seen.

AUD/JPY daily chart

The hourly RSI values reveal a similar positive trend, with values hovering around the 60 mark but pointing downwards. This is backed by the MACD which prints decreasing green bars.

AUD/JPY hourly chart

In the broader context, the AUD/JPY is trading above all three key Simple Moving Average (SMA) benchmarks of 20, 100, and 200 days and this alignment suggests a strong bullish outlook for the pair. However, as the pair remains near cycle highs and due to the cross momentum becoming overextended, a correction could be imminent.

 

AUD/JPY

Overview
Today last price 104.4
Today Daily Change 0.34
Today Daily Change % 0.33
Today daily open 104.06
 
Trends
Daily SMA20 102.91
Daily SMA50 100.9
Daily SMA100 99.19
Daily SMA200 97.49
 
Levels
Previous Daily High 104.14
Previous Daily Low 103.5
Previous Weekly High 104.56
Previous Weekly Low 103.48
Previous Monthly High 105.04
Previous Monthly Low 97.78
Daily Fibonacci 38.2% 103.9
Daily Fibonacci 61.8% 103.75
Daily Pivot Point S1 103.66
Daily Pivot Point S2 103.27
Daily Pivot Point S3 103.03
Daily Pivot Point R1 104.29
Daily Pivot Point R2 104.53
Daily Pivot Point R3 104.93

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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