AUDJPY continues to heal its wounds, posting higher highs and higher lows on the daily chart ever since it crashed to the 11-year low of 59.85 in mid-March. Attesting to the improving sentiment, the pair has crossed back above its 50-day simple moving average (SMA). Put together, these suggest the outlook has improved to neutral, from negative previously.
Short-term oscillators suggest that the latest upswing might continue for now. The RSI is in positive territory already, though it has flattened out, while the MACD continues to rise above its red trigger line.
If buyers retain control, their next target to the upside may be the 71.50 region, which halted the rebound in early March. Crossing above, the battle may intensify around the 72.35 zone, which also encapsulates the 200-day SMA. Even higher the picture could turn cautiously bullish, shifting the focus to 74.40.
If the bears retake the wheel and pierce back below 69.15, support may come from the intersection of the 67.70 area and the 50-day SMA. A decisive close beneath that crossroads would cast doubt on the neutral outlook, turning it to a more negative one and opening the door for a test of 65.60.
Summarizing, the picture seems neutral for now. A move above 72.35 and the 200-day SMA would shift it to cautiously positive, whereas a move back below 67.70 and the 50-day SMA would turn it cautiously negative.
