Technical Analysis – AUDJPY remains confined in a tight range
Posted on July 31, 2019 at 1:32 pm GMT
Marios Hadjikyriacos, XM Investment Research Desk
AUDJPY continues to trade in a relatively narrow sideways range, with an upper bound at 76.30 and a floor at 73.90. As such, the short-term outlook still seems neutral, with a break on either side needed to provide the directional bias.
Momentum oscillators doesn’t paint a clear picture either, with the RSI being below 50 but pointing higher, and the MACD hovering around its zero line.
In case of further declines, a decisive break below 73.90 could signal the resumption of the previous downtrend and therefore open the door for a test of the 72.40 region – this being the 2016 low.
On the flipside, a wave of advances could stall initially around the 50-day simple moving average (SMA) at 73.35, before the 76.30 zone comes into view. If the bulls jump above this area too, that would turn the picture to a more positive one, shifting the focus to the 77.50 territory, which halted multiple declines in early 2019.
In brief, a move either above 76.30 or below 73.90 is needed to change the neutral status.