AUD/JPY Price Analysis: Bulls testing a firm hourly resistance

AUD/JPY are testing a critical level of resistance in the highs on the hourly chart.
Despite covid risks, AUD is firm in the opening session at daily support vs the greenback.

Ross J Burland FXStreet

AUD/JPY is holding up at the start of the week following turbulent time over the remaining sessions of last week pertaining to the spike in risk-off as a consequence of the new coronavirus variant that is potentially resistant to current vaccines.

The Aussie took a battering last week on the back of both a hawkish set of Fed minutes and the worries of the implications of coronavirus within thin market conditions around the US Thanksgiving holidays. AUD/USD fell to a long-term support zone near 0.7110 and the yen benefitted from the risk-off flows sending AUD/JPY to the lowest levels since October. However, we are seeing a correction in the moves across the forex space and the cross is higher by some 0.67% so far.

AUD/JPY daily chart

AUD/JPY 4-hour chart

From a 4-hour perspective, the price is headed into an area of resistance where the typical Fibonacci retracements can be found between 81.50 and near to 82 the figure. Beyond there, the price could be hard-pressed and bears will be lurking to take advantage of a discount considering the risk-off themes.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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