AUD/JPY Price Analysis: Bulls likely to extend move beyond 23.6% Fibonacci retracement
- AUD/JPY prints modest gains in the Asian session.
- More gains envisioned if price decisively breaks 84.90.
- Momentum oscillator signals upside momentum.
The AUD/JPY price edges higher on Wednesday in the early Asian session. The cross-currency pair continues with the previous two session’s higher momentum.
At the time of writing, the AUD/JPY pair trades at 84.89, up 0.01% for the day.
AUD/JPY 4-hour chart
-637581861945364214.png&w=1536&q=95)
On the 4-hour chart, the AUD/JPY price has been consolidating near the 23.6% Fibonacci retracement at 84.97. The price extended the rally from the lows of 84.24, the Fibonacci retracement, and is broadly moving in between the 84.70-84.90 trading band.
If price makes a sustained move beyond the session’s high at 84.91, then it could extend gains toward the 85.00 horizontal support level followed by the May 28 high in the vicinity of the 85.20 area.
The Relative Strength Index (RSI) indicator reads just above 50, which signifies underlying bullish momentum. The next area of resistance could be located at the 85.40 horizontal resistance level.
Alternatively, the downward momentum could be prominent if price slips below the 38.2% Fibonacci retracement at 84.81. In doing so, AUD/JPY bears would first target the 61.8% Fibonacci retracement at 84.60.
Market participants would further be encouraged to take up the path toward the 84.40 horizontal support level followed by the low of May 25 near the 84.25 area.
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.
