AUD/JPY Price Analysis: Bulls challenge 23.6% Fibonacci retracement near 84.85
- AUD/JPY accumulates modest gain on Tuesday.
- More gains envisioned if price breaks the 84.80 mark.
- Momentum oscillator remains neutral.
The AUD/JPY price edges higher on Tuesday morning in the Asian trading session. The cross-currency pair confides in a narrow trading band with positive bias.
At the time of writing, AUD/JPY trades at 84.77, up 0.09% for the day.
AUD/JPY daily chart
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On the daily chart, the AUD/JPY pair faces rejection near the 84.90-85 region. The descending trendline from the highs of 85.80 acts as a wall of defense for the bulls.
If price sustains above the session’s high at 84.78, then it has the possibility to move to the high of June 3 in the vicinity of 85.0 area. This would also coincide with the break of the bearish slope line pushing prices higher toward the 85.20 horizontal resistance area.
The Moving Average Convergence Divergence (MACD) indicator reads above the midline with a neutral stance. Any uptick in the MACD could prompt AUD/JPY bulls to retest the May 11 near the 85.45 level.
Alternatively, if price slips below 84.70, then it could bring AUD/JPY sellers into the picture with the immediate target at the 38.3% Fibonacci retracement, which extends from the lows of 83.09,at 84.50.
The next area of support would emerge near the 50-hour Simple Moving Average (SMA) at 84.35. If price is not able to sustain here, then it could navigate to the 61.8% Fibonacci retracement at 84, the level last seen in April.
AUD/JPY Additional Level
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.
