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The AUD/JPY appears to be trading slightly above its immediate support of 100. However, the main indicators, Ichimoku cloud and the MACD suggest that the currency pair could decline further in the near term, with a possibility of sliding further towards the 99-98 region. On the top side, the currency pair couls rise towards the 102-102.4 region.

The current trend has been mixed with a lot of sideways movement. However, after declining over the last week, the AUD/JPY appears to have entered a recovery session. Nonetheless, judging my the volume levels demostarted by the MACD indicator, it is clear that there is no enough strength in the current rrecovery to fuel the currency pair further in the coming days/weeks.

AUD/JPY 4-Hourly Looks Like A Short

Guest post by Nicholas Kitonyi of Quantshare Trading Software

Furthermore, the Ichimoku cloud appears to suggest a sell signal with both the bottom and top covers well above then current price level, at 101.63 and 101.75 respectively.

Fundamentally speaking

From a fundamental perspective, the global economies have shown some resilience in the last few months, with the U.S leading the mark. The Australian economy, which relies largely on exports to China, has been on the receiving end of a slower economic growth in the Asian super power.

The commodity prices have not been doing the Australian economy any favors either based on recent global price movements, which continue to suggest a possible decline through the near future. Therefore, with this in mind, and considering the recent surge in Nikkei 225, it appears as though the AUD/JPY could be headed for a short-term pullback.