AUDJPY has held on to its recent gains that saw it rallying above the 50-day moving average and the Ichimoku cloud. The pair has retraced a little more than 50% of the December-February downtrend from 90.71 to 77.57. The 11% rally from the 3½ year-low of 77.57 to the March 14 high 86.40 has shifted the near term bias to a positive one.
Both the RSI and the MACD are still in positive territory, though on slightly weakened momentum. The nearest resistance is the 61.8% of the Fibonacci retracement level at 85.67. A break above this level would put AUDJPY within scope of the 200-day moving average.
However, if momentum continues to wane, prices are likely to find support at the 50% Fibonacci level at 84.12. Failure to hold above this level could see prices dropping into the cloud and below the 50-day moving average which would turn the bias back to neutral.
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