AUD/JPY Price Analysis: Bears challenge 23.6% Fibonacci retracement near 84.50
- AUD/JPY is consolidating gains near-daily highs in the Asian session.
- Bulls face rejection near 85.40 on the daily chart
- Key support zone at 38.2% Fibonacci retracement level.
The AUD/JPY cross manages to open higher extending Friday’s gain in the Asian session. However, the cross lacks the conviction to stay higher and moves back in the vicinity of the session's lower level.
At the time of writing, AUD/JPY is trading at 85.27, up 0.03% on the day.
AUD/JPY daily chart
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On the daily chart, the AUD/JPY cross is facing stiff resistance near the 85.45 region under the formation of a technical double top reversal pattern, which hints of a probable downward move for the cross to be watched out.
On moving to the downside, the first support would emerge near the lows of March 18 at 84.35 followed by the 23.6% Fibonacci retracement level at 84.50. Bears could then be poised to meet the weekly lows in the neighbourhood of 84.20 (May 3).
The Moving Average Convergence Divergence (MACD) reads above the midline and an uptick would seek February weekly highs last seen in 2018 at 85.60 followed by the 87.51 level. The price action would invalidate the prevailing trend and carve out the path for the February 2018 high of 88.14.
AUD/JPY Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
