AUD/JPY technical analysis: Struggles for direction between 100, 50-day EMA
|- AUD/JPY fails to extend medium-term trend-line breakout beyond 100-day EMA.
- Overbought conditions of RSI could push sellers for re-entry.
Despite breaking key medium-term resistances (now supports), AUD/JPY clings to 74.20 during early Asian morning on Tuesday.
The 100-day exponential moving average (EMA) restricts the quote’s upside, at 74.56 now, even after rising beyond five-month-old falling trend-line and 50-day EMA. Also supporting the case for a pullback is overbought conditions of 14-day relative strength index (RSI).
As a result, sellers will look to re-enter on a downside break below 73.45/40 confluence including resistance-turned-support line and 50-day EMA.
In doing so, 23.6% Fibonacci retracement of April-August declines near 72.50 will become their target.
Meanwhile, an upside clearance of 100-day EMA near 74.56, could escalate the pair’s run-up towards 75.00 whereas 50% Fibonacci retracement level of 75.36 will please bulls then after.
AUD/JPY daily chart
Trend: sideways
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.