AUD/JPY Price Analysis: Recovery from weekly support appears elusive around 92.50
- AUD/JPY probes five-week downtrend around 11-week low, grinds higher of late.
- MACD, RSI favor bearish move inside the falling wedge chart pattern.
- Clear break of 93.30 could convince buyers to renew monthly high.
AUD/JPY pares recent losses around the 2.5-month low, seesaws around the intraday high near 92.35 during Monday’s Asian session. In doing so, the cross-currency pair bounces off a one-week-old support line to begin the week on a firmer note after five consecutive weeks of downside.
Although the immediate support line restricts the AUD/JPY pair’s downside near 92.10, backed by steady RSI, the recovery moves remain elusive as the quote stays inside a three-week-long falling wedge bullish chart pattern.
That said, the 100-SMA adds to the upside filters near 93.00, in addition to the stated wedge’s upper line near 93.30.
It’s worth noting, however, that a clear upside break of the 93.30 hurdle will allow the AUD/JPY buyers to aim for the fresh high, currently near 94.70, on the way to the theoretical target of 99.10.
Meanwhile, pullback moves need to break the aforementioned support line, close to 91.10 of late, to favor sellers.
Following that, the lower line of the wedge around 90.65 could act as a buffer during the fall targeting the 90.00 psychological magnet.
AUD/JPY: Four-hour 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.
