Technical Analysis – AUDJPY continues to consolidate in a narrow range
Posted on July 4, 2019 at 12:45 pm GMT
Marios Hadjikyriacos, XM Investment Research Desk
AUDJPY remains confined in a relatively narrow sideways range, between 73.90 and 76.30, since early May. The near-term outlook is therefore neutral, with a break on either side needed to provide the directional bias.
Momentum oscillators also paint a flat picture, with the RSI flattening near its neutral 50 line, and the MACD being close to zero.
If the buyers take control and manage to push above 76.30, that would turn the near-term outlook to cautiously positive, opening the way for a test of the support-turned-resistance area of 77.50 – marked by the March low.
On the downside, a successful violation of the 73.90 zone could signal that the broader downtrend is back in effect. In that case, the bears would eye the 72.40 territory, which halted the selloff back in 2016.
Overall, as long as the price remains between 73.90 and 76.30, the short-term picture is flat.