AUD/JPY Price Analysis: Extends pullback from key hurdles below 93.00
|- AUD/JPY holds lower ground after reversing from weekly top.
- Convergence of 21-DMA, 50-DMA precedes previous support line from early May to restrict immediate upside.
- Bearish MACD signals also favor the decline towards 50% Fibonacci retracement.
AUD/JPY bears keep reins after retaking control from crucial resistances, despite recent dribbling of around 92.60 during Friday’s Asian session.
That said, the cross-currency pair refreshed a one-week high the previous day before reversing from a confluence of the 21-DMA and the 50-DMA, as well as reversing from the resistance-turned-support stretched from May 12.
The pullback moves join bearish MACD signals to keep sellers hopeful.
However, the 50% Fibonacci retracement level of May-June upside, around 92.10, quickly followed by the 92.00 threshold, could challenge the AUD/JPY sellers.
It’s worth noting that July’s bottom near 91.40 and the 61.8% Fibonacci retracement level of 90.95 will precede the latest swing low close to 90.50 to restrict the cross-currency pair’s downside past 92.00.
Alternatively, recovery moves may initially confront the aforementioned DMA convergence of 93.75 before poking the previous support line surrounding 93.85.
Even if the AUD/JPY prices cross the 93.85 hurdle, the bulls need validation from the 94.00 round figure before retaking control.
AUD/JPY: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.