FX.co ★ Kenwood | AUD/JPY

The AUD/JPY daily chart shows a strong and well-structured bullish trend over the observed period. Price action has consistently formed higher highs and higher lows, confirming sustained upward momentum. The market has respected the moving averages throughout the trend, which further supports the bullish structure. The blue moving average (short-term) remains above the yellow (medium-term) and red (long-term) moving averages. This alignment indicates a classic bullish trend formation. Price is currently trading above all three moving averages, suggesting continued buying pressure. The spacing between the averages has widened gradually, which reflects increasing trend strength rather than consolidation. Recent candles show strong bullish bodies with minor pullbacks, indicating healthy momentum rather than exhaustion. Although there are occasional retracements, they appear shallow and controlled, often bouncing near the blue moving average. This suggests that buyers are defending short-term dynamic support levels effectively. The RSI (14) is currently around the mid-60s level. This indicates bullish momentum without being in extreme overbought territory. The RSI remains above the 50 level, confirming that buyers are in control. However, since it is approaching the 70 area, traders should remain cautious of potential short-term pullbacks or consolidation phases. From a structural perspective, the market recently broke above previous resistance levels and is now trading near recent highs. If price maintains its position above the short-term moving average, further upside continuation is likely. On the other hand, a strong bearish candle closing below the blue moving average could signal the beginning of a deeper correction toward the yellow moving average. Overall, the trend remains clearly bullish on the daily timeframe. Momentum supports further upside, but traders should monitor RSI levels and watch for any signs of weakening buying pressure. As long as price continues to respect dynamic support and maintain higher highs and higher lows, the bullish bias remains intact.