AUD/JPY Bull-Flag Takes Shape as RSI Falls from Overbought Zone
A bull-flag appears to be taking shape after AUD/JPY registered a fresh yearly high (97.67) earlier this month.
AUD/JPY Rate Outlook
AUD/JPY may consolidate over the remainder of the month as it holds above last week’s low (95.26), and the Relative Strength Index (RSI) may continue to show the bullish momentum abating as if falls back from overbought territory.
The move below 70 in the RSI may lead to a larger pullback in AUD/JPY as it appears to be trading within a descending channel, and failure to hold above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area may push the exchange rate towards the 93.90 (61.8% Fibonacci retracement) to 94.40 (23.6% Fibonacci retracement) region.
Nevertheless, a continuation pattern may unfold as AUD/JPY appears to be bouncing back from the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area, with a break above channel resistance bringing 97.40 (61.8% Fibonacci retracement) back on the radar.
In turn, AUD/JPY may track the positive slope in the 50-Day SMA (92.16) as it cleared the November 2022 high (95.56) earlier this month, with a break above the monthly high (97.67) opening up the September 2022 high (98.77).
AUD/JPY Rate Outlook
AUD/JPY may consolidate over the remainder of the month as it holds above last week’s low (95.26), and the Relative Strength Index (RSI) may continue to show the bullish momentum abating as if falls back from overbought territory.
The move below 70 in the RSI may lead to a larger pullback in AUD/JPY as it appears to be trading within a descending channel, and failure to hold above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area may push the exchange rate towards the 93.90 (61.8% Fibonacci retracement) to 94.40 (23.6% Fibonacci retracement) region.
Nevertheless, a continuation pattern may unfold as AUD/JPY appears to be bouncing back from the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area, with a break above channel resistance bringing 97.40 (61.8% Fibonacci retracement) back on the radar.
In turn, AUD/JPY may track the positive slope in the 50-Day SMA (92.16) as it cleared the November 2022 high (95.56) earlier this month, with a break above the monthly high (97.67) opening up the September 2022 high (98.77).
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