AUD/JPY: Australian Dollar resumed growth
Yesterday the pair strengthened amid growing prices for commodities.
Supportive news that hit the markets yesterday were that Iran agreed to the proposal by few OPEC member-countries to freeze current output levels of oil. The country, however, did not specify the dates when restrictions will come into effect.
At the same time, the Yen remains under pressure after the last week’s rally as investors are worrying that the Bank of Japan may intervene in the market should the Yen continues strengthening.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing. MACD is growing and giving a quite strong buy signal. Stochastic reached the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 81.00 (local low), 80.34 (local low), 80.00, 79.20, 77.57 (11 February low).
Resistance levels: 82.06 (local high), 82.41 (16 February high), 83.00, 83.62, 84.46, 85.00 (4 February high), 85.69, 86.00, 86.35 (29 January high).
Long positions can be opened after the price consolidation above the level of 82.06 (with the appropriate indicators signals) with targets at 83.50, 84.50, 85.00 and stop-loss at 81.00. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 80.34 with targets at 78.00, 77.50 and stop-loss at 81.00. Validity – 2-4 days.