AUDJPY closed above the Ichimoku cloud on Tuesday but momentum appears to be waning today as prices were in negative territory. However, both RSI and the stochastics are in bullish territory, suggesting further upside momentum in the near term.
In the broader view, the pair has been consolidating within a one-month trading range and prices would need to break above the October 12 high of 88.60 to shift the medium-term outlook to a more bullish one. The next resistance could come at the 200-day moving average around 90.88. A push above this level is needed for AUDJPY to move more decisively into bullish ground.
To the downside, the 50-day moving average is the nearest support at 86.29. If prices dropped below this level, the bullish near term bias would be lost.
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