- AUD/JPY edges higher on Thursday following the previous session’s gains.
- Additional gains visible for pair, if price breaks 80.95 decisively.
- Momentum oscillator holds onto the oversold zone with a positive stance.
AUD/JPY edges higher with substantial gains in the Asian session. The pair extends the previous two day’s gains and looks to move beyond 81.00.
At the time of writing, AUD/JPY is trading at 80.92, up 0.14% for the day.
AUD/JPY daily chart
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On the daily chart, the AUD/JPY pair has taken the support near the double bottom formation around 80.20. After breaking the 20-day Simple Moving Average (SMA) below 84.61 on June 15, the pair has been under continuous selling pressure.
If price sustained above the intraday high at 80.97, it could move back to the 20-day SMA at 81.25 as the first upside target.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD could amplify the upside momentum.
In doing so, the buyers would test the high of July 27 at 81.51 followed by the 81.90 horizontal resistance level.
Alternatively, if price starts moving lower, it would continue with the prevailing trend with the first downside target at 80.52, the previous day low.
The price action suggests further downside for the pair.
Next, AUD/JPY bears would target the 80.25 horizontal support level.
A daily close below the mentioned level would open the gates for the levels last seen in February.
The next area of support would be low of February 5 at 80.04.
AUD/JPY additional levels
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