Chart Of The Day - Corrective rebound extends for AUDJPY in light of easing trade tensions
Kelvin Wong April 10, 2018 12:10 PM
82.40 is the key short-term support to watch for AUD/JPY to maintain corrective rebound phase.
Short-term technical outlook on AUD/JPY (Tues, 10 Apr)
Key technical elements
- After it printed a low of 80.48 on 23 Mar 2018, the AUD/JPY cross pair has started to stage rebound of 200+ pips to hit a current intraday high of 82.96 in today, 10 Apr Asian session.
- The on-going rebound is being support by a revival in medium-term upside momentum where the daily RSI oscillator has continued to inch upwards above its former resistance at the 45% level after a prior bullish divergence signal.
- In the short-term (hourly chart), the pair has started to evolve within a minor ascending channel with its next significant short-term resistances coming in at 83.00/20 (Fibonacci cluster & the former minor swing high areas of 06/08 Mar 2018) follow by 83.60 (76.4% Fibonacci retracement of the recent decline from 13 Mar high to 23 Mar 2018 low of 80.48 & the former minor range support from 12/13 Mar 2018).
- The key short-term support rests at 82.40 which is defined by today, 10 Apr Asian session low that has tested and staged a rebound from the former minor range resistance that is closed to the 82.40 level from 05/09 Apr 2017.
Key levels (1 to 3 days)
Pivot (key support): 82.40
Resistances: 83.00/20 & 83.60
Next supports: 81.90/77
Therefore as long as the 82.40 key short-term pivotal support holds, the AUD/JPY may shape an extension of its on-going corrective rebound to target the next intermediate resistances at 83.00/20 follow by 83.60 next.
On the other hand, a break below 82.40 negates the bullish tone for a deeper pull-back to retest 81.90/77 (the former minor range resistance of 27/30 Mar 2018.
Charts are from eSignal
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.