AUD/JPY Price Analysis: Weekly rising channel directs bulls toward strong upside barriers
- AUD/JPY struggles to keep the upside break of 76.00 despite trading near nine-day high.
- 100-bar SMA restricts immediate advances, confluence of 200-bar SMA and a falling trend line from August 31 is important resistance.
- Sellers will not risk entries unless witnessing a downside break of short-term channel.
AUD/JPY trades near 75.85 during the early Friday morning in Asia. The pair rose to the highest since September 21 the previous day while following a one-week-old ascending trend channel pattern. However, 100-bar SMA challenges the buyers off-late.
With the bullish MACD signals, the quote may nearby hurdle, 100-bar SMA level of 75.90, but the further rise will be challenged by the mentioned channel’s resistance around 76.20/25.
Even if AUD/JPY bulls manage to cross 76.25 resistance, a joint of 200-bar SMA and a one-month-long descending resistance line, close to 76.45/55, will be a tough nut to crack for them.
Meanwhile, the support line of the channel, at 75.51 now, can stop the short-term downside of AUD/JPY ahead of dragging it below the 75.00 threshold.
In a case where the pair slips below 75.00, September 25 top surrounding 74.60 and the previous month’s low of 73.97 will lure the bears.
AUD/JPY four-hour chart
Trend: Pullback 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.
