AUD/JPY may rise 83 - 124 pips

Our pivot point stands at 97.70.

Our preference

The upside prevails as long as 97.70 is support.

Alternative scenario

The downside breakout of 97.70 would call for 97.02 and 96.61.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 97.96 and 97.77). Finally, the AUD/JPY is trading above its upper Bollinger band (standing at 98.29).

Supports and resistances

100.35 **

99.94 *

99.54 **

99.13

98.30 last

97.97

97.70 **

97.02 *

96.61 **

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