Another Shot at Breaking the Downtrend—Will This One Stick?
AUD/JPY is making another attempt to break downtrend resistance dating back to the highs struck in July last year. With momentum indicators such as RSI (14) and MACD turning bullish, this attempt may prove more successful than January’s failed breakout.
The intersection of the downtrend with minor horizontal support at 96.80 looms as a key level in assessing near-term setups.
Longs could be established above it with a stop-loss order beneath, should the break hold. Targets include 97.78 and 99.10. If the breakout fails, shorts could be considered beneath, with a stop-loss placed above for protection. 95.00—where buyers have been lurking—is one potential target.
From a fundamental perspective, keep an eye on movements in US 10-year Treasury yields which have been a key driver not just for USD/JPY but also AUD/JPY recently.
Good luck!
DS
The intersection of the downtrend with minor horizontal support at 96.80 looms as a key level in assessing near-term setups.
Longs could be established above it with a stop-loss order beneath, should the break hold. Targets include 97.78 and 99.10. If the breakout fails, shorts could be considered beneath, with a stop-loss placed above for protection. 95.00—where buyers have been lurking—is one potential target.
From a fundamental perspective, keep an eye on movements in US 10-year Treasury yields which have been a key driver not just for USD/JPY but also AUD/JPY recently.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.