AUD/JPY Price Analysis: Eases below 81.70 resistance confluence
- AUD/JPY steps back from three-week high, snaps two-day uptrend.
- 200-SMA, ascending trend line from early July challenge bulls.
- 17-day-old support line restricts short-term losses ahead of yearly low.
AUD/JPY takes offers around an intraday low of 81.35, down 0.09% on a day, amid Thursday’s Asian session. In doing so, the cross-currency pair respects the downtick in the Momentum line while easing below the key resistance confluence comprising 200-SMA and an ascending trend line from July 08.
Given the quote’s pullback amid mildly offbeat Momentum, the latest consolidation is likely to extend towards the 81.00 threshold.
However, any further downside will be challenged by an ascending support line from July 20, near 80.80.
In a case where AUD/JPY bears keep reins past 80.80, the pair’s fall to the 80.00 psychological magnet and the yearly bottom close to 79.80 can’t be ruled out.
Meanwhile, an upside clearance of 81.70 hurdle will enable the buyers to aim for the 82.00 round figure and June’s low near 82.15. Though, the mid-July peak close to 82.85 could challenge the AUD/JPY pair’s further upside.
Overall, AUD/JPY remains in the recovery mode but buyers seek validation from 81.70.
AUD/JPY: Four-hour chart
Trend: Pullback expected
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.
