Chart Of The Day Corrective rebound in progress for AUDJPY

Short-term technical outlook on AUD/JPY (Tues, 13 Mar)

Key technical elements

• In past 2 weeks, the AUD/JPY has indeed staged the bearish breakdown below its former minor range support at 83.40/30 and tumbled towards the short-term support/target of 81.60. Please click here for a recap on our previous “Chart Of The Day” published on 28 Feb 2018.
• Since its 81.60/50 swing low printed on 05 Mar 2018, the cross pair has started to evolve within a minor ascending channel with its lower boundary acting as a support at 83.60 (see 1 hour chart).
• The aforementioned minor ascending channel support of 83.60 also confluences with the minor swing low areas of 12/13 Mar 2018 and the 23.3% Fibonacci retracement of the on-going rebound from 05 Mar 2018 low to today, 13 Mar current intraday high of 84.20.
• The hourly RSI oscillator remains positive above its corresponding ascending support at the 48% level which indicates that short-term upside momentum of price action remains intact.
• The next significant short-term resistances stand at 84.85/95 (minor range resistance of 15/21 Feb 2018 & a Fibonacci projection cluster) follow by 85.50/70 (descending trendline from 23 Jan 2018 high & a Fibonacci projection cluster).

Key levels (1 to 3 days)

Intermediate support: 83.95

Pivot (key support): 83.60

Resistances: 84.85/95 & 85.50/70

Next supports: 83.30 (trigger) & 81.50

Conclusion

Technical elements suggest that the on-going short-term corrective rebound of AUD/JPY still has room for potential advancement. Therefore as long as the 83.60 key short-term pivotal support holds, the cross pair is likely to shape a further push up to target 84.85/95 and above it opens up scope for a further potential rally towards 85.50/70 next.

On the flipside, a break below 83.30  should invalidate the corrective rebound phase to see another round of bearish impulsive downleg to retest the 81.50 support (05 Mar 2018 swing low) in the first step within a long-term secular “triangle range” configuration in place since Oct 2007.

Charts are from eSignal