AUDJPY price action was trading in an ascending channel for the last few months of 2020. The bullish intent was met with exhaustion after the long-term bearish divergence finally saw prices move lower.
Since then, a long period of consolidation has been apparent, with prices bouncing off the top border off the cloud. This is a strong indication that Ichimoku cloud engulfment will not occur, leading the trend towards the upside.
We now look towards another possible move inside the specified channel, as bulls take control. Should a break past $81 hold, then this is likely to lead to a move to the lower channel, and then to the mean above the $82 level.
An intra-day perspective shows a bullish spur after prices broke the previous peak at the beginning of February. However, we are currently looking at momentum exhausting as a move towards the Ichimoku top border looms.
The recent bearish divergence could lead to a move lower, as a pierce at the top of the cloud could lead the short-term bias lower.
Should the specified targets be broken, then monthly lows could be likely as bears could press prices firmly lower.
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