- AUD/JPY edges lower on the first trading day of the week.
- Bears will reign control if price decisively breaks 84.00.
- Momentum oscillator holds onto oversold zone with a neutral stance.
AUD/JPY kickstarts the new trading week on a lower note on Monday. The pair hovers in a close trading band while swinging back and forth.
At the time of writing, AUD/JPY is trading at 84.02, down 0.12% for the day.
AUD/JPY daily chart
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On the daily chart, the AUD/JPY has broken a broader trading range of 84.20 and 85.50 with a strong selling pressure on June 17. The pair made a double bottom formation near 82.40 and made a recovery to the prior levels in the earlier week.
That said, price faces strong resistance near the above mentioned lower trading range of 84.20. A sustained break below 84.00, a key psychological mark, would bring the selling opportunities back into action.
The first target for AUD/JPY bears could be located at the 83.85 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD could amplify the downside momentum.
In doing so, the sellers would test the low of June 23 at 83.52 followed by the 83.20 horizontal support level.
Alternatively, if price sustains above the 20-day Simple Moving Average (SMA) at 84.20, it could move back to June May 24 high at 84.38.
The price action suggests a continuation of the previous trading move inside the rectangle formation. Next, AUD/JPY bulls would target the 84.75 horizontal resistance level followed by June 15 high at 84.93.
AUD/JPY additional levels
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