- AUD/JPY has staged a bullish breakout from its major descending channel and traded back above its 200-day moving average.
- Short-term momentum remains positive supported by the 1-hour RSI oscillator.
- Key short-term support to watch for AUD/JPY is at 92.70.
The ongoing 11-week up move from the 24 March 2023 low of 86.06 seen in the AUD/JPY has been reinforced by several positive technical elements; the cross pair has rallied by 755 pips (+8.8%) from its 24 March 2023 low to today’s current intraday level of 93.60 (6-month high) at this time of the writing.
Fig 1: AUD/JPY medium-term trend as of 9 Jun 2023 (Source: TradingView, click to enlarge chart)
Fig 2: AUD/JPY minor short-term trend as of 9 Jun 2023 (Source: TradingView, click to enlarge chart)
Bullish breakout from the major descending channel from September 2022 high
AUD/JPY has managed to exit from the upper boundary (resistance) of the major descending channel on 6 June 2023 and so far, traded above it which now turns into a pull-back support at 92.70. These observations suggest that the AUD/JPY may be in undergoing a potential new leg of medium-term up move (refer to daily chart)
Short-term momentum remains positive
As seen from the 1-hour chart, the price actions of AUD/JPY have started to evolve within a minor ascending channel in place since the 1 June 2023 low of 90.26 coupled with a momentum bullish breakout condition seen in the 1-hour RSI oscillator.
The next intermediate resistances stand at 94.50 and 95.00 (the upper boundary of the minor ascending channel). However, failure to hold above the 92.70 key short-term pivotal support negates the bullish tone to expose the next support at 91.90 (also the 200-day moving average).