AUD/JPY Price Analysis: Test three-week highs, but retreats below the 50-DMA
- AUD/JPY pair tests 50-DMA but fails to hold gains, capped by technical resistance.
- AUD/JPY must break through 50-day EMA and 90.00 figure for bullish continuation.
- For a bearish scenario, the AUD/JPY must reclaim the 20-DMA at 89.04.
The AUD/JPY rallied sharply on upbeat market sentiment and hit a three-week high at 90.05 but retreated somewhat towards the end of Monday’s session. As the Asian session begins, the AUD/JPY is trading at 89.81
AUD/JPY Price action
On Monday, the AUD/JPY pair tested the 50-day Exponential Moving Average (EMA)at 89.93 but could not hold to its gains above the latter. Additionally, it tested an upslope previous support trendline and turned resistance, which capped AUD/JPY’s upward move. Oscillators like the Relative Strength Index (RSI) at bullish territory shifted flat, suggesting buyers are taking a respite. The Rate of Change (RoC) portrays that buying pressure is cooling. Hence, the AUD/JPY might consolidate in the near term.
The AUD/JPY must crack the 50-day EMA and the 90.00 figure for a bullish continuation. Once cleared, the AUD/JPY could test the 100-day EMA at 90.78 before approaching the 200-day EMA at 91.04. In an alternate scenario, a bearish one, the AUD/JPY first support would be the 20-day EMA at 89.04. Break below, and the AUD/JPY will head toward the week’s low of 88.55, ahead of challenging 88.00.
AUD/JPY chart
AUD/JPY Technical levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
