AUD/JPY displays strong bullish momentum, currently trading near 101.39 after a solid 0.54% rally. While bullish forces are dominant, signals on shorter timeframes suggest a temporary downward correction might be needed for further advancement.

Technical Analysis: Mixed Signals

• Daily Chart Bullish: The RSI nearing overbought territory and positive MACD readings on the daily chart confirm a robust bullish trend.
• Hourly Chart Caution: Red bars on the hourly MACD suggest potential short-term buyer fatigue, although the RSI still indicates positive momentum overall.
• SMA Support: AUD/JPY’s position above crucial SMAs (20, 100, and 200-day) reinforces the bullish bias.

Outlook:

The dominant bullish trend remains intact, but traders should be mindful of the possibility of a healthy short-term correction if daily indicators become overbought. This consolidation could allow buyers to regroup for a further push higher.