AUD/JPY Price Analysis: Bulls stepping back to leap forward
- AUD/JPY snaps two-day winning streak while easing from highest in one week.
- Receding weakness of MACD histogram, sustained trading beyond the key EMAs favor the bulls.
- The Confluence of 21-day and 50-day EMA, followed by one-month-old falling trend line, become important resistance.
AUD/JPY steps back from Tuesday’s high of 75.43, actually the highest since September 22, to 75.33 amid the early Wednesday morning in Asia. The risk barometer surged during the previous two days while regaining important levels above 200-day and 100-day EMAs.
Also portraying the gradual strength in underlying momentum is the MACD histogram that eases the bearish bias off-late.
As a result, the latest pullback is less likely to be dangerous unless breaking down the 200-day EMA level of 74.07. Though, odds of the quote’s declines to 74.85 level comprising the 100-day EMA can’t be ruled out.
In a case where the AUD/JPY bears dominate past-74.07, they need to conquer the 74.00 threshold to eye June 12 low near 72.50.
Meanwhile, a joint of short-term EMAs around 75.80 becomes the strong upside barrier for the bulls to cross ahead of targeting a falling trend line from August 31, at 76.55.
During the rise, AUD/JPY may catch a breather close to September 09 low surrounding 76.10.
AUD/JPY daily chart
Trend: Bullish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
