AUDJPY: Relative Strength Index Resistance at 66.50

AUDJPY: Relative Strength Index Resistance at 66.50

The Relative Strength Index on the 4 hour AUDJPY has not been able to get much past the 66.50 level since May of this year.  I have marked the RSI and price with red arrows to show what happens when it does get to the 66.50 level. 

The Relative Strength Index again struggled just below the 66.5 level and final dropped hard yesterday.  The fall did stop at the bottom of a channel I created using the RSI peaks as the top of the channel and snapping the bottom line to the lows created earlier in the month.

I do believe the AUDJPY will have a deeper pullback below the lows made on 08/16 before moving back up to the 93.00 area.  I will be watching the RSI to see if it breaks the bottom channel line.  If it does it is an indication that the 08/16 lows will be broken.

I DO NOT believe an RSI breakout above 70 at this time will be a sell opportunity.  I will be looking at it as a bullish opportunity in the weeks and month ahead.    

Note the possible falling wedge pattern.

AUJPY 4 Hour Relative Strength Index Chart