AUD/JPY may rise 47 - 70 pips

Our pivot point stands at 104.25.

Our preference

The upside prevails as long as 104.25 is support.

Alternative scenario

The downside breakout of 104.25 would call for 103.86 and 103.62.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 104.17 and 104.06).

Supports and resistances

105.76 **

105.52 *

105.28 **

105.05

104.58 last

104.41

104.25 **

103.86 *

103.62 **

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