AUD/JPY Price Analysis: Looks set to test 50-day SMA support around 82.00
- AUD/JPY wavers around the mid-82.00s after fading the bounce off three-week low.
- Bearish MACD, sustained break of more than four-month-old support line favor sellers.
- Bulls need a decisive break beyond 84.10 for fresh entry.
AUD/JPY takes rounds to 82.50, after failures recover from the monthly bottom, during the initial Asian session trading on Thursday. In doing so, the quote keeps the previous day’s downside break of an ascending support line from November 02 amid bearish MACD.
Considering the quote’s inability to bounce off monthly low, coupled with the key trend line breakdown and downbeat MACD, AUD/JPY sellers eye 50-day SMA and the monthly low near 82.10 as immediate support.
It should, however, be noted that the pair’s downside past-82.10 will be tested by February 26 low of 81.99 before directing AUD/JPY bears to January tops surrounding 80.90.
Meanwhile, the corrective pullback can look to regain above the previous support line, at 82.95 now, a break of which should propel the quote towards a horizontal area established since March 04 near 84.10.
If at all, the AUD/JPY bulls manage to cross the 84.10 hurdle on the daily chart, odds of its run-up to the 85.00 and the latest multi-month top around 85.45 can’t be ruled out.
AUD/JPY daily chart
Trend: Bearish
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.
