AUD/JPY 4H Chart: Channel Up

6 Jul 2017

The Australian Dollar is trading in a minor channel up against the Yen. The bottom channel line, however, still requires one additional confirmation. The price has returned near the 86.20 mark, being supported by the 55-period SMA since early June. Most technical indicators are still located in the bullish area, while trend signals demonstrate that there is no clear trend in the pair’s movement. The rate is likewise approaching the 88.03 level —a 2016/2017 high reached mid-February. It is possible that the Aussie edges higher in the upcoming trading days; however, the 88.00 area might function as a strong psychological resistance. Meanwhile, a breakout of the 55-period SMA from above may indicate that the bearish sentiment has taken the upper hand.