AUD/JPY Price Analysis: 200-bar SMA questions pullback from seven-week-old support line
- AUD/JPY fades recovery moves from 76.44 ahead of the key Aussie employment data.
- Bearish MACD, break of 200-bar SMA keeps the sellers hopeful.
- Bulls will wait for a clear break of short-term resistance line before taking entries.
AUD/JPY eases from 76.71 to 76.65 during the early Thursday morning in Asia. In doing so, the aussie cross marks failures to extend pullback from an upward sloping trend line from July 30 ahead of Australia’s August month employment data.
Read: Australian Employment Preview: Victoria’s lockdown taking its toll on employment
While 200-bar SMA, at 76.71, could be considered as the major upside barrier, for now, bearish MACD also stops the bulls from retaking the controls.
As a result, AUD/JPY sellers await a clear downside break of the multi-day-old support line, currently around 76.50, for fresh entries. Following that, the monthly low near 76.20 and the August 20 bottom surrounding 75.60 will gain market attention.
On the contrary, the pair’s ability to cross the crucial SMA level of 76.71 may help AUD/JPY buyers to regain 77.00 but a descending trend line from August 31, close to 77.35, will be important to watch afterward.
Should the AUD/JPY prices manage to clear 77.35 resistance, the 78.00 threshold and the monthly high near 78.35 could return to the charts.
AUD/JPY four-hour chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
