The AUD/JPY has seen a reversal lower in trading today, but this has developed after the Forex pair has accomplished a rather satisfying short-term bullish move.
After reaching a high of around 81.500 yesterday, the AUD/JPY has stumbled lower and is now trading near the 80.900 mark as of this writing. On the 23rd of July, the AUD/JPY accomplished a high of nearly 81.650 before reaching a low on early yesterday of 80.750. Yes, from that low, the AUD/JPY rose to its high water mark in the past twenty-four hours.
On the 21st of July, the AUD/JPY was trading near a low of 80.100 and turned in a subsequent bullish move until reaching its high two days later. The lows on the 21st, however, were slightly higher than the lows demonstrated on the 20th. On the 10th of May, the AUD/JPY was trading near a high of 85.800, which from a technical perspective began its bearish move until the lows of the 20th of July.
The ability the past week-and-a-half to produce a rather solid bullish move higher correlates technically well within the Forex markets. Although the AUD/JPY did reverse from its highs yesterday and moved lower, it still remains within sight of its short-term highs. Perhaps troubling for technical considerations is that yesterday’s high did not really challenge the highs seen on the 23rd. However, short-term reversals are always part of the speculative landscape and traders may want to pay more attention to support levels to see if they remain durable.
If current support junctures of 80.700 to 80.600 prove they can sustain prices above, this may be an indicator for speculators that the AUD/JPY is consolidating and may move higher again. Clearly, the 81.000 level is an important psychological level too for the Forex pair and if values can puncture this level higher and maintain ratios above, this could also add fuel to the notion that yesterday’s highs and the values from the 23rd of July may be tested sooner rather than later.
Certainly, the AUD/JPY remains within the lower depths of its 3-month technical charts, but traders may believe the Forex pair was oversold and remains in rather attractive speculative territory in order to wager on further bullish momentum. Buying the AUD/JPY on slight dips may prove to be a logical speculative wage for traders in the short term based on the notion support levels are incrementally rising.
AUD/JPY Short-Term Outlook:
Current Resistance: 81.100
Current Support: 80.680
High Target: 81.450
Low Target: 80.450