AUD/JPY Price Analysis: Eases from two-week-old resistance around 83.50
- AUD/JPY fades Friday’s recovery moves below multiple key hurdles.
- 100-SMA, monthly resistance line offers a strong upside barrier.
- Two-week-old rising trend line restricts near-term losses, bullish MACD favor buyers.
AUD/JPY fails to extend Friday’s run-up, drops back to 83.50 amid the initial Asian session on Monday. In doing so, the cross-currency pair justifies the previous day’s inability to cross the near-term horizontal line even as bullish MACD signals back recovery moves.
Even if the buyers cross the 83.65 immediate resistance, a convergence of 100-SMA and a one-month-old falling trend line near 83.75-80 will be a tough nut to crack for them. Also acting as an upside filter is the 200-SMA level of 84.20.
In a case where AUD/JPY rallies beyond 84.20, early June’s lows surrounding 84.45-50 may test the pair’s further upside ahead of directing the bulls to the 85.00 threshold and then to the previous month’s peak close to 85.20.
Meanwhile, pullback moves signal a retest of an upward sloping support line from June 21, near the 83.00 round figure.
However, any further downside past the 83.00 support will be challenged by a horizontal area comprising multiple levels marked since June 18, around 82.75-80.
Overall, AUD/USD remains sidelined but the latest pullback could test the short-term support.
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.
