Technical Overview of AUD/USD and USD/JPY Currency Pair

AUD/USD

AUD traded higher against USD and closed at 0.6686

AUD/USD sustains the bounce above 0.6700 amid mixed Australian NAB Business Survey and Home Loan data. The spot draws support from a risk-on rally in the Asian stocks, as coronavirus fears take a back seat.

  • AUD/USD is reporting marginal gains despite below-forecast NAB data.
  • The 14-day RSI is reporting a bullish divergence.
  • Australia’s Home Loan data bettered estimates by a big margin.
  • That alongside the uptick in the equities could help the Aussie eke out notable bounce.

According to the Analysis, pair is expected to find support at 0.6673 and a fall through could take it to the next support level of 0.6663. The pair is expected to find its first resistance at 0.6703 and a rise through could take it to the next resistance level of 0.6713.

USD/JPY

USD traded higher against JPY and closed at 109.74

  • USD/JPY holds onto recovery gains from 21-day SMA.
  • A sustained break of monthly high will divert the bulls towards the yearly top.
  • 200-day SMA acts as key support.

USD/JPY registers 0.10% gains while rising to 109.85 by the press time of the pre-European session on Tuesday. In doing so, the quote justifies the bullish candlestick formation portrayed the previous day.

As a result, prices are now gearing up to the monthly top surrounding 110.05, a break of which will escalate the latest recovery towards January 17 high near 110.30.

According to the Analysis, pair is expected to find support at 109.65 and a fall through could take it to the next support level of 109.58. The pair is expected to find its first resistance at 109.85, and a rise through could take it to the next resistance level of 109.92.

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Author: Mark Burg