AUD/JPY price analysis: Bulls hold their ground, near-term pullback signalled

Source Fxstreet
  • The AUD/JPY trades on gains at 98.33 in Wednesday's session.
  • Daily RSI for AUD/JPY suggests bullish momentum with a rising tendency and positive MACD.
  • Hourly chart signals possible short-term bearish correction in a bullish bias.
  • AUDJPY operating above key SMAs indicates long-term bullish sentiment.

In Wednesday's session, the AUD/JPY pair was spotted making moderate gains, trading at the 98.33 level. The technical landscape exhibits a generally bullish sentiment, boosted by positive momentum in the daily Relative Strength Index (RSI) RSI and Moving Average Convergence Divergence (MACD) histogram. However, a contrasting short-term bearish bias can be glimpsed on the hourly charts, suggesting possible corrective phases. Despite this, the prevailing upward drive exemplified by the pair's position above key SMAs aligns the broader perspective with the bulls.

The daily RSI for the AUDJPY pair hovers in the positive territory with a rising tendency indicating growing bullish momentum in the market. Meanwhile, the MACD histogram prints green bars, signifying positive momentum, and presents an incline that confirms the increasingly bullish sentiment.

AUD/JPY daily chart

Switching to the hourly perspective, the RSI trends lower into the negative territory. This divergence in the RSI values on the daily and hourly charts could hint at a near-term corrective bearish phase within the dominant bullish bias. The MACD histogram here is currently falling, producing red bars, suggesting a slightly stronger negative momentum in the vicinity.

 

AUD/JPY hourly chart

However, on a broader outlook, with the AUD/JPY operating above its primary SMAs (20, 100, 200-day), indicates the long-term sentiment favors the bulls. Thus, any short-term weakness might be perceived as a healthy technical correction.

 

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