Signal price

Settles above 3-year high at 86.70

  • Australian bulls are firmer after the breakout of an ascending triangle.
  • The asset holds over 20 and 200 period EMA which adds to the upside filters.
  • The bears can dictate the levels if the asset slips below 84.60.

AUD/JPY is trading above its 3-year resistance at 86.70. The cross formed a positive open driving session on Thursday as Australian bulls witnessed carryover buying from the first tick of the trading session.

On a weekly scale, the AUD/JPY gave a breakout of an ascending triangle which signals a slippage in the standard deviation and indicates a balanced auction but with a positive bias. The upper end of the ascending triangle was marked from the May 14, 2021 high at 85.80 while the lower end was placed from the October 30, 2020 low at 73.14.

The 20 and 200 period exponential moving averages (EMAs) at 83.16 and 80.36 respectively are trending higher, adding to the upside filters.

The Relative Strength Index (RSI) (14) broke above 60.00 from below, showing no signs of divergence and overbought. Holding above the 60.00 levels indicates a bullish setup going forward.

For further upside, bulls need to breach Thursday’s high at 86.74, which will send the pair towards the February 9, 2018 high at 87.51, followed by the round level at 88.00.

On the contrary, the bulls may lose control if the pair slips below the March 15th low at 84.60, which will drag the pair to the March 8th low at 83.80. Violation of the latter will send the cross to the round level at 83.00.

AUD/JPY Weekly Chart