AUD/JPY Rally Persists as RSI Holds Above 70
AUD/JPY registers a fresh yearly high (95.19) as it stages a seven-day rally, and the exchange rate may attempt to test the November 2022 high (95.56) as the Relative Strength Index (RSI) pushes above 70 for the first time this year.
AUD/JPY Rate Outlook
AUD/JPY continues to appreciate after reversing ahead of the 50-Day SMA (90.98) at the start of the month, and the exchange rate may track the positive slope in the moving average following the break above the February high (93.05).
At the same time, the overbought reading in the RSI is likely to be accompanied by a further advance in AUD/JPY like the price action from last year, with a break/close above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area, which incorporates the November 2022 high (95.56), opening up 97.40 (61.8% Fibonacci retracement).
However, failure to break/close above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area may curb the recent rally in AUD/JPY, and the RSI may show the bullish momentum abating if/when it pushes below 70.
Failure to extend the recent series of higher highs and lows may push AUD/JPY back towards the 93.90 (61.8% Fibonacci retracement) to 94.40 (23.6% Fibonacci retracement) region, with the next area of interest coming in around 93.10 (38.2% Fibonacci extension).
--- Written by David Song, Strategist
AUD/JPY Rate Outlook
AUD/JPY continues to appreciate after reversing ahead of the 50-Day SMA (90.98) at the start of the month, and the exchange rate may track the positive slope in the moving average following the break above the February high (93.05).
At the same time, the overbought reading in the RSI is likely to be accompanied by a further advance in AUD/JPY like the price action from last year, with a break/close above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area, which incorporates the November 2022 high (95.56), opening up 97.40 (61.8% Fibonacci retracement).
However, failure to break/close above the 95.30 (50% Fibonacci extension) to 96.10 (78.6% Fibonacci retracement) area may curb the recent rally in AUD/JPY, and the RSI may show the bullish momentum abating if/when it pushes below 70.
Failure to extend the recent series of higher highs and lows may push AUD/JPY back towards the 93.90 (61.8% Fibonacci retracement) to 94.40 (23.6% Fibonacci retracement) region, with the next area of interest coming in around 93.10 (38.2% Fibonacci extension).
--- Written by David Song, Strategist
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