AUD/JPY Reaches Overbought Region, Trades Below Level 71

Key Resistance Levels: 74.000, 76.000, 78.000
Key Support Levels: 58.000, 60.000, 62.000

AUD/JPY Price Long-term Trend: Bullish
The AUD/JPY pair is in an ascending channel. The bulls broke the previous resistance at level 70 and pushed price to level 71.034. However, at the current price level, the market is facing some resistance. The price is currently retracing and it may retrace to level 70.300. Nonetheless, after retracement, level 71 is likely to be retested.

Daily Chart Indicators Reading:
The moving averages have made a bullish crossover. The 21-day SMA crosses over the 50-day SMA. The pair has risen to level 63 of the Relative Strength Index period 14. The market is in the uptrend zone and it is above the centerline 50.

AUD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an ascending channel. The bulls are presently battling to break the resistance at level 71. The price has retested the resistance and was repelled. After resistance, the market is in a sideways move below the resistance. The price will rally above level 72 if the current resistance is breached.

4-hour Chart Indicators Reading
The AUD/JPY pair is currently above 80% range of the daily stochastic. This implies that the currency pair has reached the overbought region of the market. Sellers are likely to emerge to push prices downward. The pair may retrace in the overbought region but will resume the uptrend.

General Outlook for AUD/JPY
The pair has broken above the previous resistance but battling to break the next resistance at level 71. Presently the market is consolidating below the resistance as the bulls fail to breach the current resistance.


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