AUD/JPY can be observed as a barometer of risk sentiment, according to Fan Yang, CMT, Chief Technical Strategist at FXTimes.
“Resolution of European debt crisis, as well as unified approach dealing with the US debt ceiling and overall budget issues are things that can boost risk appetite. In that regards, tomorrow’s EU summit can shake things up for the Aussie-Yen as well,” he explains.
From a technical standpoint, “The RSI reading in the 4H chart however was able to break the previous high, but found resistance at 60. Staying below 60, the RSI reading would reflect maintenance of the bearish momentum,” comments Mr. Yang. “The bearish outlook is at the moment contained above the 200SMA in the daily chart. Therefore, if we clear below the recent low of 83.12, we can open up lower support pivots, 82.20 in the very short-term (50% retracement and channel support).”
At the time of writing, AUD/JPY has closed the American session at 84.64, 30 pips below its starting price. To the downside, immediate support lies at 84.27 (July 18 high) and, below there, 84.05 (June 20 low). To the upside, resistance levels lie at 84.95 (June 3 low) and 85.20 (20-day EMA).
“Resolution of European debt crisis, as well as unified approach dealing with the US debt ceiling and overall budget issues are things that can boost risk appetite. In that regards, tomorrow’s EU summit can shake things up for the Aussie-Yen as well,” he explains.
From a technical standpoint, “The RSI reading in the 4H chart however was able to break the previous high, but found resistance at 60. Staying below 60, the RSI reading would reflect maintenance of the bearish momentum,” comments Mr. Yang. “The bearish outlook is at the moment contained above the 200SMA in the daily chart. Therefore, if we clear below the recent low of 83.12, we can open up lower support pivots, 82.20 in the very short-term (50% retracement and channel support).”
At the time of writing, AUD/JPY has closed the American session at 84.64, 30 pips below its starting price. To the downside, immediate support lies at 84.27 (July 18 high) and, below there, 84.05 (June 20 low). To the upside, resistance levels lie at 84.95 (June 3 low) and 85.20 (20-day EMA).
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