- Oversold conditions, as reported by technical indicators, seem to have put a bid under AUD/JPY.
- The 4-hour chart shows a bull divergence of the RSI.
The AUD/JPY pair is currently trading at session highs near 76.20, representing 0.37% gains on the day.
The bounce is likely associated with the oversold conditions reported by the 14-day relative strength index (RSI) and could be extended further to the descending (bearish) 5-day moving average (MA), currently at 76.54, as the RSIs on both the hourly and 4-hour charts are reporting bullish divergences.
Further, the futures on the S&P 500 are currently reporting 0.5% gains. That would weaken the haven demand for JPY, allowing a stronger corrective bounce in the AUD/JPY cross.
4-hour chart
Trend: Corrective bounce
Pivot points
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