AUD/JPY Price Analysis: Looks to extend gains beyond 83.50
- AUD/JPY remains poised to extend the previous day’s gain on Thursday.
- More gains possible for the pair if price decisively breaks 83.35.
- Momentum oscillators remain oversold and warn caution for any aggressive bets.
AUD/JPY edges higher on Thursday morning in the Asian session. The pair recovered part of its two day’s losses in the previous day.
As of writing, AUD/JPY is trading at 83.33, up 0.03% for the day.
AUD/JPY daily chart
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On the daily chart, the AUD/NZD currency pair has been facing downside pressure below the 20-day Simple Moving Average (SMA) at 84.64 since June 16.
If price sustains above the session’s high at 83.34, then a potential upside toward the high of the 83.50 horizontal resistance level can not be ruled out.
In doing so, there is plenty of room for the pair to test the previous higher levels. The first in line would be the June 29 high at 83.73 followed by 84.00, the key psychological mark.
Alternatively, the Moving Average Convergence Divergence(MACD) indicator trades in the oversold zone with a neutral stance. Any downtick in the MACD could bring sellers back into action.
AUD/JPY bears would target the 83.00 and the 82.70 horizontal support levels.
The next area of support is located at June 21 low in the vicinity of the 82.10 area.
AUD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
