AUD/JPY Price Analysis: Directs bounce off 21-day EMA towards 83.00
- AUD/JPY keeps corrective pullback near intraday high, snaps two-day downtrend.
- Upbeat RSI, recovery from short-term EMA favor bulls.
- Two-month-old horizontal area, 50-day EMA becomes a tough nut to crack for sellers.
AUD/JPY trims early Asia gains while easing to 82.65 during the initial Monday. In doing so, the quote fades bounce off 21-day EMA but the RSI strength and multiple supports to the south keeps buyers hopeful.
As a result, AUD/JPY sellers will refrain from entry unless witnessing a daily closing below the 21-day EMA level of 82.00. Following that, a four-month-old ascending support line, currently around 81.25, becomes the key.
It should, however, be noted that the AUD/JPY buyers remain hopeful beyond convergence of 50-day EMA and a horizontal area comprising multiple levels since early January, around 80.65.
Meanwhile, the 83.00 threshold becomes an immediate target for the buyers whereas 83.50 and 84.30 are likely following hurdles to test AUD/JPY upside.
In a case where AUD/JPY prices remain strong beyond 84.30, the recently flashed multi-month high around 85.00 will be in the spotlight.
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.
