- The daily RSI for AUD/JPY reveals that the bulls are in control, approaching overbought conditions.
- Although the hourly MACD indicates a short-term decline, the RSI highlights the dominance of the buyers.
- With the crossover hitting multi-year highs, buyers could run out of gas.
AUD/JPY is exhibiting significant bullish momentum, settling at the 101.39 level and showing an encouraging rally of 0.54%. Bulls' dominance is evident, but a healthy correction could be necessary for buyers to gain additional ground.
On the daily chart, the RSI is showing positive momentum, with the latest reading approaching overbought condition. The moving average convergence divergence (MACD) supports this situation, printing green bars.
AUD/JPY daily chart
On the hourly chart, the MACD shows red bars, indicating that buyers have already exhausted themselves. However, the RSI readings suggest stable and positive momentum, with numbers above 50 apart from a brief drop to 48.
AUD/JPY hourly chart
AUD/JPY is also showing an overall bullish stance as it positions above the 20-day, 100-day, and 200-day simple moving averages (SMA). Therefore, all signs point to a clear bullish stance, but traders should be aware that if the daily indicators reach overbought conditions, the pair could see some healthy pullbacks to consolidate the gains.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
