AUDJPY has surged by almost 3% in the past two days to break above 80, helping it recover from fresh 4-month lows. However, despite the strong upside momentum, RSI has only barely reached 50 and the MACD is still in negative territory (although the signal line is in an ascending trend).
Further gains in the near term are possible but the pair is already struggling to hold above the key resistance level of 80 and needs a strong break above 80.45 (a previous support and resistance level) to gain further momentum. However, with prices deep below the Ichimoku cloud and the moving averages, the longer term negative outlook is unlikely to change unless AUDJPY can target the 50-day moving average.
If prices reverse to the downside, support should come from the 78 level. Failure to hold above this level could see the pair beating the 4-year low of 77.57 set back in February.
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