AUD/JPY Confirms the Aussie Bid
I tend to use AUD/JPY as a sort of confirmatory tool for AUD/USD given its dynamics. For the most part we are seeing that breakout for AUD/JPY from a trend perspective on the Renko. Bricks are above both the 21-EMA and the Supertrend line on the short term. For the medium term trend following indicator we have the 50-SMA which is also below the bricks. Moreover from a much longer term perspective, AUD/JPY is trading above the 500-SMA. What we need to look out for is diminishing momentum. While the RSI is pointing higher and above 50, the Z-Score SMA is trending lower. That’s a sign of bearish divergence. So we may get a couple of red bricks, hopefully towards the 21-EMA. But all in all we’re looking at a retest of the 114.3 resistance level for AUD/JPY.
