AUDJPY was unable to sustain the rally from July 28 after finding resistance at the tenkan-sen line at around 90.78. The intra-day bias is on the upside with the stochastics still rising but RSI is in bearish territory, though it’s pointing up.
In the medium term, the outlook for the pair is looking bearish as prices are below the Ichimoku cloud and the moving averages. AUDJPY would need to cross above the kijun-sen line at 92.50 if it’s going to gain stronger momentum to break into the cloud and climb out of its long-term range.
On the downside, the nearest support level is the July 9 low of 89.14. A break below this level would take it to new one-year lows and possibly into a new downtrend.
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