AUD/JPY Price Analysis: Strong bullish momentum pushes pair to fresh cycle highs
- AUD/JPY continues its rally, reaching fresh cycle highs around 105.70 on Thursday.
- Daily RSI and MACD stand deep in positive terrain.
- Indicators point towards more room for additional gains.
During Thursday's session, the AUD/JPY pair maintained its uptrend, achieving new cycle highs around 105.70, its the highest point reached since 2013. There has been a clear consolidation around the 104.00 level in the last sessions, and as the sellers failed to make a significant move, buyers stepped in.
On a daily scale, the Relative Strength Index (RSI) of the AUDJPY has risen to 68, up from 63 recorded on Wednesday. This increase suggests bullish momentum continues to gain strength. The Moving Average Convergence Divergence (MACD) marker persists in showing rising green bars, indicating the bullish momentum is far from plateauing.
AUD/JPY daily chart
In summary, the AUD/JPY pair's robust showing on Thursday endorses a broader bullish outlook, with the intensity of the trend validated by the pair's position above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). Looking forward, traders can expect the pair to sustain its uptrend, potentially reaching into the 105.80-106.00 range, as current indicators do not suggest over-extended movements and hence provide space for subsequent gains.
On the off chance that the pair falls below the support level set at 105.00, followed by the 104.15 level (20-day SMA), it would likely seek new support thresholds. As such, the 102.50 and 100.35 levels may serve as potential support lines.