AUD/JPY Price Analysis: Auction above 38.2% Fibo retracement at 93.20 supports aussie bulls
- An establishment above 38.2% Fibo retracement adds to the upside filters.
- Momentum oscillator RSI (14) is favoring a consolidation ahead.
- The risk barometer could tumble to 90.00 if drops below the 23.6% Fibo retracement.
The AUD/JPY pair is displaying back and forth moves in a 30-pips range after a vertical upside move from a low of 92.40 on Friday. On a broader note, the cross has moved significantly higher after printing a two-month low of 90.50.
A perpendicular upside move after slipping below the 61.8% Fibonacci retracement (which is placed from May 12 low at 87.30 to June 8 high at 96.85) close to 91.00 has defended the downside bias. The responsive buying action has pushed the cross above the 38.2% Fibo retracement at 93.20, which has now strengthened the antipodean against the yen bulls.
The asset is oscillating between the 50-and 200-period Exponential Moving Averages (EMAs) at 93.17 and 93.50 respectively, which indicates a consolidation ahead.
Also, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which indicates that the cross is waiting for a fresh trigger for a decisive move.
Should the asset oversteps Aug 4 high at 93.81, aussie bulls will get strengthen further and will drive the asset towards 23.6% Fibo retracement at 94.60, followed by July 27 high at 94.70.
Alternatively, the yen bulls could regain strength if the asset drops below 50% Fibo retracement at 92.10. A downside move may further drag the asset towards a 23.6% Fibo retracement close to 91.00. A slippage below 23.6% Fibo retracement will unleash the yen bulls for a downside move towards the psychological support of 90.00.
AUD/JPY four-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
