Thu, Jun 01, 2023 @ 03:26 GMT
HomeContributorsTechnical AnalysisAUDJPY Upside Intact Despite Pullback off 138.2% Fibo Extension

AUDJPY Upside Intact Despite Pullback off 138.2% Fibo Extension

AUDJPY is residing at the red Tenkan-sen line at 94.95 after retreating from the 95.73 mark, which is a level two months short of being a seven-year high, and in the vicinity of the 138.2% Fibonacci extension of the down leg from 94.30 until 90.74. The climbing simple moving averages (SMAs) are defending the broader positive structure.

Meanwhile, the Ichimoku lines are reflecting a stall in bullish forces, while the short-term oscillators are indicating an increase in negative momentum. The MACD, some distance north of the zero barrier, is easing towards its red trigger line, while the RSI is sliding in the bullish region. Moreover, the negatively charged stochastic oscillator is promoting a deeper price pullback in the pair.

For now, if sellers remain in control, an initial support base could transpire linking the 94.30 and the 93.85 levels. If this support section fails to provide buyers with positive traction, the zone between the rising 50- and 100-period SMAs at 93.67 and 93.06 respectively, could deter the price from gaining a stronger downward pace. In the event that this area, which contains the Ichimoku cloud too, is unsuccessful in muting bearish pressures, the price may then test the 92.36 low before sinking for the 91.55 obstacle.

Otherwise, if buyers re-emerge around the red Tenkan-sen line, growing positive impetus could revisit the 138.2% Fibo extension of 95.64. Overrunning this and the freshly recorded multi-year peak of 95.73, the price may then propel for the 161.8% Fibo extension of 96.49 prior to challenging the space between the 96.97 and the 97.64 borders, which encompass multiple highs over the early January until early June 2015 period.

Summarizing, AUDJPY is revealing minor weakness in its efforts to push past the 138.2% Fibo extension of 95.64. For negative tendencies to intensify, the price would need to slip beyond the 50- and 100-period SMAs, while a retracement diving past the March trough of 90.74 could ignite worries about the broader bullish uptrend.
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading