Select the account you'd like to open


Chart of the week – AUD/JPY potential push up to medium-term range top

Chart of the week – AUD/JPY 

AUD/JPY potential push up to medium-term range top

Short-term technical analysis

click to enlarge chart

Time stamped: 4 Jul 2021 at 1:00pm SGT

Source: CMC Markets

  • In the coming week, the Australian central bank, RBA will release its latest monetary policy decision and guidance on Tuesday, 6 July. Hence, it is now timely to decipher the latest key technical elements, trend bias and key levels on a related FX pair, the AUD/JPY.
  • Since its 52-week of 85.81 printed on 10 May 2021, the AUD/JPY has been evolving in a medium-term sideways/flat range configuration for almost three months as the 85.81 medium-term swing high failed to stage a proper bullish breakout from its 18 March high of 85.45 and declined by 367 pips to retest the medium-term sideways/flat range support at 82.30/14 on 27 June.
  • Since hitting its 27 June low, short-term momentum has started to turn positive where the 4-hour Relative Strength Index (RSI) has shaped a series of “higher lows” after it exited from its oversold region and has not reached an extreme overbought level yet. In addition, current price action of the AUD/JPY has started to evolve into a minor ascending channel after the recent drop from its 84.30 minor high printed on 28 June and thereafter it has staged a rebound right at the 61.8% Fibonacci retracement of the prior push up from 27 June low to 28 June high which coincides with the 30 June minor swing low
  • These observations suggest that short-term upside momentum may have resurfaced to support a further potential push up in price action to retest the three-month medium-term range top/resistance.
  • Watch the 82.85 key short-term pivotal support for a further potential push up towards the 84.30 intermediate resistance and a break above it reinforces a further up move towards the 85.40 medium-term range top/resistance. However, a 4-hour close below 82.85 negates the bullish tone for a slide back to retest the 82.30/14 medium-term range support.

Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

Sign up for market update emails