CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

AUDJPY upside momentum losing steam

Article By: ,  Financial Analyst
December 17, 2019 10:25 PM

Medium-term technical outlook on AUD/JPY



click to enlarge charts

Key Levels (1 to 3 weeks)

Intermediate resistance: 75.65

Pivot (key resistance): 76.30

Supports: 74.65, 73.95 & 73.50

Next resistances: 77.75 & 80.50 (LT pivot)

Directional Bias (1 to 3 weeks)

Bearish bias in any bounces below 76.30 key medium-term pivotal resistance for a potential push down to target 73.95 (the “bearish flag” support) and a break below it reinforces a further slide to target the next near-term support at 73.50 (minor congestion area of 28 Sep/16 Oct 2019 & 50% Fibonacci retracement of the recent 3-month plus rally from 26 Aug low to 13 Dec 2019 high).

However, a clearance with a daily close above 76.30 invalidates the bearish scenario for a further corrective up move towards the next intermediate resistance at 77.75.

Key elements

  • The 6-big figure up move from 26 Aug 2019 low of 69.97 low of the AUD/JPY cross pair has started to evolve within a medium-term ascending “bearish flag” configuration, a potential consolidation/dead-cat bounce motion within its major descending channel in place since Nov 2014 high.
  • In addition, the daily RSI oscillator has just traced out a bearish divergence at its overbought region which indicates that the recent upside momentum has abated. These observations coupled with the graphical analysis suggest that AUD/JPY may resume its impulsive down move sequence soon.
  • The 76.30 key medium-term resistance is defined by the upper boundary of the “bearish flag”, swing high areas that rejected previous up moves during May/July 2019 and a Fibonacci expansion cluster.
  • The lower boundary of the “bearish flag” is acting as a support at 73.95.

Charts are from eSignal


StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024