AUDJPY (1H) - short term bearish bias
The pair broke above the daily resistance of 74.50 without much conviction. Though the medium term bullish outlook remains intact, we may expect the pullback to last for the next few days. The RSI divergence signalled the top at the aforementioned level as longs started to take some money off the table. The bearish MA cross along with the break of the 74.10 support line confirmed that sentiment has soured. The MA and the bearish trend line are likely to cap any rebound.
Key support: 73.60
Key resistance: 74.50
The pair broke above the daily resistance of 74.50 without much conviction. Though the medium term bullish outlook remains intact, we may expect the pullback to last for the next few days. The RSI divergence signalled the top at the aforementioned level as longs started to take some money off the table. The bearish MA cross along with the break of the 74.10 support line confirmed that sentiment has soured. The MA and the bearish trend line are likely to cap any rebound.
Key support: 73.60
Key resistance: 74.50