AUD/JPY Price Analysis: Double bottom emerged, eyeing a rise towards 95.00
- The AUD/JPY rallied more than 2.90% on Wednesday on an upbeat sentiment.
- Double bottom in the AUD/JPY daily chart could pave the way for further upside.
- AUD/JPY Price Analysis: The double bottom targeted is the 95.00 figure.
The Australian Dollar (AUD) registered staggering gains against the Japanese Yen (JPY) on Wednesday, rallied 250 pips, further cementing the case for a double bottom in the daily chart. As the Asian session begins, the AUD/JPY is trading with minuscule losses of 0.05%, at 90.47.
AUD/JPY Price Analysis: Technical outlook
Wednesday’s price action presented the AUD/JPY rising above the 20-day Exponential Moving Average (EMA) at 90.33, and on the rally, it approached December’s monthly high of 91.05. Now that the AUD/JPY pair confirmed the double bottom, a clear break of the latter would pave the path towards the double bottom measured target of 95.00. Oscillators like the Relative Strength Index (RSI) is about to cross over the 50 mid-line, a bullish signal, while the Rate of Change (RoC) suggests that buying pressure is building.
Therefore, the AUD/JPY first resistance would be the confluence of the 50 and 200-day EMA around 91.66. Once cleared, that would expose the 92.00 figure, followed by the 100-day EMA at 92.42.
As an alternate scenario, the AUD/JPY first support would be the 90.00 mark, which, once cleared, could open the door for a fall to January’s three daily high-turned-support once broken, at 89.32. Break below would send the AUD/JPY sliding to 89.00.