AUD/JPY may rise to 111.11 - 112.38

Our pivot point stands at 106.69.

Our preference

The upside prevails as long as 106.69 is support.

Alternative scenario

The downside breakout of 106.69 would call for 104.55 and 103.28.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 105.71 and 103.64).

Supports and resistances

114.93 **

113.65 *

112.38 **

111.11

108.48 last

107.53

106.69 **

104.55 *

103.28 **

Number of asterisks represents the strength of support and resistance levels.