By analyzing the daily technical chart we can see that bulls are leading in the game and playing at front foot, even they are dominating the bears at every nook and corner but the momentum they are having with themselves is too slow. That’s why we can say that slow and steady wins the race is applicable for bulls.
The pair is showing pure strength from last couple of days, as we can see on the daily technical chart that bulls are playing at their front foot and presently pair is sustaining above the moving average lines which is indicating us further bullish signal.
The Australian Dollar (AUD) against the Japanese Yen (JPY) is an exciting pair for its relation to risk. The pair is frequently among one of the most highly correlated pairs to price action in US equities on a short to medium term basis. The pair has a propensity to rise in a low risk environment on carry flows while the opposite is true when we see a ‘risk-off’ approach in the markets.
Well daily chart is giving impression like bulls are leading in the game and taking the charge it seems like they are driving the car. If other thing remains constant, it is likely that the Australian Dollar continues to gain against the Japanese Yen during the following trading sessions. The next targets for the pair could be the 80 level.
The odds are in favor of bulls and intraday bias remains bullish on the pair as long as 73.00 level remains intact. A bullish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being and RSI is also providing bullish signal. The 77.00 level is immediate resistance level followed by 78.00 whereas 72.50 level is strong key support level followed by 70 level.
Based on chart and studies above we would suggest our readers that buy at 75.80 for the target of 78 and 80 with the tight stop loss of 72.50.
