AUD/JPY Price Analysis: Extends pullback from key hurdles below 93.00
- AUD/JPY holds lower ground after reversing from weekly top.
- Convergence of 21-DMA, 50-DMA precedes previous support line from early May to restrict immediate upside.
- Bearish MACD signals also favor the decline towards 50% Fibonacci retracement.
AUD/JPY bears keep reins after retaking control from crucial resistances, despite recent dribbling of around 92.60 during Friday’s Asian session.
That said, the cross-currency pair refreshed a one-week high the previous day before reversing from a confluence of the 21-DMA and the 50-DMA, as well as reversing from the resistance-turned-support stretched from May 12.
The pullback moves join bearish MACD signals to keep sellers hopeful.
However, the 50% Fibonacci retracement level of May-June upside, around 92.10, quickly followed by the 92.00 threshold, could challenge the AUD/JPY sellers.
It’s worth noting that July’s bottom near 91.40 and the 61.8% Fibonacci retracement level of 90.95 will precede the latest swing low close to 90.50 to restrict the cross-currency pair’s downside past 92.00.
Alternatively, recovery moves may initially confront the aforementioned DMA convergence of 93.75 before poking the previous support line surrounding 93.85.
Even if the AUD/JPY prices cross the 93.85 hurdle, the bulls need validation from the 94.00 round figure before retaking control.
AUD/JPY: Daily chart
Trend: Further weakness 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.
