Home Forex Bulls are holding the line and defending the 100-day SMA

Bulls are holding the line and defending the 100-day SMA

by SuperiorInvest


  • AUD/JPY is currently trading at 96.32, down 0.30%.
  • According to the daily chart indicators, the negative RSI trajectory and the rising red MACD histogram indicate bearish momentum.
  • Indicators on the hourly chart suggest bearish pressure has eased with a bullish revival evident in the positive RSI slope and flat MACD bars.

In Monday’s session, the AUD/JPY pair lost ground with a low of 96.32 after a previous high of 96.80 earlier in the day. On the fundamentals side, markets look ahead to the Reserve Bank of Australia meeting on Tuesday, where investors will look for clues on future direction, which could set the pace for the cross for this week. The technical outlook for this pair remains neutral to bearish diagramalthough recent activity shows the bulls regaining some ground on the hourly chart.

AUD/JPY levels to watch

According to the daily chart, it shows a neutral to bearish outlook. Negative territory and a downward slope of the Relative Strength Index (RSI) indicates bearish momentum. At the same time, the Moving Average Convergence Divergence (MACD) histogram shows rising sake of red bars, which signal short-term downward pressure. Despite the shorter-term momentum suggesting bearish sentiment, the pair is evidently below the 20-day SMA when looking at the Simple Moving Averages (SMA), but the bulls are putting up a fight at the 100-day SMA and it is still above the 200-day average. This suggests that in the bigger picture, the bulls are holding firm.

Moving to the shorter-term outlook given by the hourly chart, it paints a slightly different picture. In this time frame, although the bears have taken a step back and allowed some recovery, the bullish strength is reflected more as a retaliation than a comeback. Even though the Relative Strength Index (RSI) is in negative territory, it boasts a positive slope indicating some upward pressure. The Moving Average Convergence Divergence (MACD) reflects this sentiment with flat red bars. However, the buying momentum is not enough to negate the dominant selling sentiment, but caused the session’s bearish outlook to be suspended.

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