AUD/JPY Price Analysis: Bounces off four-month-old support line, 200-day EMA
|- AUD/JPY retraces from 14-day low while trying to regain 75.00.
- Normal RSI conditions favor further consolidation from the key support confluence.
- Bears may not hesitate to challenge the mid-June lows during the further downside.
AUD/JPY seesaws around 74.80 while trying to keep the recovery moves from over two weeks’ low during the early Friday morning in Asia. The aussie cross dropped heavily the previous day but couldn’t break a joint of 200-day EMA and an ascending trend line from June 12. The pair’s following pullback from 74.25 also cheers an absence of overbought conditions and suggests extension.
As a result, the quote is set to challenge the 75.00 threshold as immediate resistance ahead of confronting a falling trend line from August 31, currently around 76.30. This gives ample opportunities to ignore the late-August lows near 75.60, which earlier considered important resistance.
If at all the bulls manage to cross 76.30 on a daily closing basis, the monthly top near 76.50 and the 77.00 round-figure could offer an intermediate halt to the bulls targeting the yearly top surrounding 78.50.
On the downside, the September month’s bottom near 74.00 will offer additional support below the 74.25/20 key barrier for the AUD/JPY sellers’ entry.
Should there be a clear downside past-74.00, June 12 bottom close to 72.50 will be in the spotlight.
All in all, the bears are likely to catch a breather and hence a bit more of consolidation can’t be ruled out.
AUD/JPY daily chart
Trend: Pullback expected
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