- AUD / JPY fluctuates around the top in December 2018, marking the previous day.
- Overbought RSI, a candlestick that suggests a trend reversal suggests withdrawal moves.
- The bulls need to cross 82.20 to be convicted, vendors can spot the previous line of resistance from Feb. 8.
- Catalysts related to QE extension will be viewed in RBA minutes.
AUD / JPY rounded out to 82.00, currently declining to 81.95, during Tuesday’s opening Asian session. In doing so, the quote justifies the bear formation of the Doji candlestick, the highest in the last 26 months.
Also, favoring a chance of withdrawal could be a buyout of RSI terms and cautious sentiment ahead of the minutes from a meeting of the Reserve Bank of Australia (RBA). The Australian central bank matched the broad market forecast without changing the interest rate during its recent meeting. However, the expansion of quantitative easing (QE) is teasing vendors.
As a result, pessimism records could drag AUD / JPY prices to a week-long previous resistance, now at 81.50.
In case the cross fails to bounce from 81.50, the monthly support line and 200 bar SMA offer additional filters to the south.
Meanwhile, a fresh buy will wait for a clear break above the peak of 82.20 in December 2018, which in turn will bring AUD / JPY bulls towards a September high close to 82.50.
It should be noted, however, that the pair’s ability to stay positive even after 82.50 allows AUD / JPY buyers to target the end of 2018 around the round figure of 84.00.
AUD / JPY four-hour chart
Trend: Withdrawal expected
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