The AUDJPY is not left out from the buying in the JPY pairs in trading today. It, like the GBPJPY (SEE POST) , is trading higher on the back of the USDJPY strength. The AUDUSD remains confined to a range (but it is getting ready to break one of these days – be aware). Nevertheless the buying today has been able to push the price above the 38.2% of the move down from September and the 200 day MA (green line in the chart below at the 94.59).
AUDJPY broke above the 200 day MA today at 94.59.
If the price can stay above the 200 day MA, the buyers remain in control. The next targets come in at the 95.207 and then the 100 day MA at the 95.76 level. Note how the price had a difficult time against the 100 day MA (blue line) at the end of September and early October. This should continue to make any test down the road a tough one to break (store that in your trading memory bank).
Looking at the 5 minute chart traders can see the details of the action today – especially as it relates to the 200 day MA at the 94.59. Note how traders used the 200 day MA as a support level for a good hour or two (see 94.59 green horizontal line in the chart below). That is showing me a willingness to add to longs (bullish). The price leg higher will now be monitored to see if the buyers on that move, really do love it. If they do, look for the 38.2-50% to hold (at 94.75-797). If it does, any seller will continue to feel the pain from the trend move. If the price goes below, it is not the end of the world for the trend, but focus will then shift to the 200 day MA line in the sand at the 94.59 area. That will be the key for the bulls in the move going forward.
AUDJPY shows strength above 200 day MA level.