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Increases to six-day high amid risk-on sentiment

by SuperiorInvest


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  • AUD/JPY is up late in the session, supported by risk-on sentiment, supported by Wall Street’s move.
  • Buyers in control as the pair breaks above 97.00, aiming for a daily close above 98.00 for further gains.
  • Despite the upside, downside risks remain; sellers can target levels below 97.00 for bearish momentum.

AUD/JPY moves higher at the end of Friday’s North American session, sponsored by risk-on momentum, as progress on Wall Street could appreciate it. That’s why safe havens are under pressure while the US Treasury pulls back, a tailwind for riskier assets. At the time of writing, AUD/JPY traded hands at 97.79, printing a new six-day high.

The pair started the week around the low of the week, below the Tenkan-Sen, but the AUD/JPY exchange rate was already above the Ichimoku Cloud (Kumo), indicating that buyers were in command. They subsequently regained 97.00 and extended their gains on Friday. However, pullback risks remain as buyers need a daily close above 98.00 to remain hopeful of testing last year’s high of 98.58. Once these levels are crossed, the next stop will be the number 99.00.

In a bearish case, sellers need to push prices below 97.00 through the Tenkan Sen at 96.97 towards the January 16 low of 96.58. A breach of the latter reveals the Kijun-Sen at 96.18, ahead of Senko Span B and A at 96.14 and 96.01 each.

AUD/JPY Price Action – Daily Chart

AUD/JPY Key Technical Levels

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