The AUD/JPY pair displayed a steady performance throughout the week, closing at 108.50 level with a 1% gain. Despite a slight pullback on Friday, likely due to profit booking, the overall bullish trend remains intact. The Relative Strength Index (RSI) settled at 80, suggesting an overbought scenario and the potential for a correction in the near future. The Moving Average Convergence Divergence (MACD) also indicated a cooling of the bullish momentum.
In the daily chart, AUD/JPY continues to show strong bullish sentiment, supported by its position above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). Any corrective pressure could be met with support at the 108.00 level, followed by 107.50 and 107.00 levels. The 104.90 (20-day SMA) level could serve as an additional support line for the pair.
Despite the slight moderation in the AUD/JPY pair, buyers are keeping the cross at cycle highs, indicating a strong bullish bias. A healthy correction should not be ruled out in the near term, but the overall outlook remains positive. Traders are closely monitoring key levels for potential buying opportunities and support areas as the pair continues to consolidate above the 108.00 mark.
Overall, the AUD/JPY pair remains in a favorable position, with buyers showing resilience and keeping the cross at elevated levels. The technical indicators suggest a potential correction in the near future, but the overall sentiment remains bullish. Traders are advised to monitor key support and resistance levels closely and consider potential buying opportunities as the pair navigates around the 108.00 mark. With a strong performance throughout the week, the AUD/JPY pair is poised to maintain its upward trajectory in the coming sessions.
