AUD/JPY Up 7 Pips; Eyes 20 Day Average

AUD/JPY Price Recap

The back and forth price flow continues for AUD/JPY, which starts today off at 73.767 US dollars, up 7 pips 0.09% from the previous day. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 38.73% from the day before — and down 53.51% from the same day the week before. Relative to other instruments in the Forex asset class, AUD/JPY ranked 12th yesterday in terms of percentage price change. Below is a price chart of AUD/JPY.

AUD/JPY Technical Analysis

The first thing we should note is that AUD/JPY is now close to its 20, 50, 100 and 200 day averages, located at 73.8509, 74.7718, 74.3427 and 74.2933 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 8.4 pips away. Something else of critical noteworthiness is that AUD/JPY may have broken its trend on the 30 day basis, as the trend’s momentum appears to be slowing down. Volatility for AUD/JPY has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on AUDJPY, with 4 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 0.21, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a double top technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

On an hourly chart, there is a double top pattern processing and bouncing off from the upper key level so that there is a high probability of dropping further….If your leverage is high I recommend only trading in the trading channel like me….But if you are a relatively long term trading (like trading hourly chart) you can consider adjusting your target further below.