AUD/JPY technical analysis: 50% Fibo. can trigger pullback amid oversold RSI levels
- Repeated failures to slip beneath 50% Fibo and RSI conditions favor pullback.
- A downward sloping trend-line since mid-April can the limit upside.
AUD/JPY seesaws near 75.90 ahead of Australian employment data on early Thursday.
The 50% Fibonacci retracement level of January to April upside, near 75.80, acts as immediate support for the pair while 14-day relative strength index (RSI) signals oversold conditions.
Given the nearness to important support and RSI levels, chances of the pair’s pullback to 76.30 are much brighter. However, a month-old descending trend-line at 76.75 could question further upside.
If prices manage to rise past-76.75, buyers’ can again aim for 77.45/50 resistance-area comprising multiple lows marked during January and March.
Meanwhile, a downside break of 75.80 highlights January 04 low near 75.25 as the key level ahead of shifting market attention to July 2016 bottom surrounding 74.50.
Additionally, pair’s sustained declines under 74.50 might not refrain from visiting 2016 low near 72.40.
AUD/JPY daily 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.
