AUD/JPY technical analysis: 71.70/71 confluence limits immediate upside

AUD/JPY remains below 23.6% Fibonacci retracement, 100-HMA.
One-week old support-line will be next on sellers’ radar.
Two-day long descending trend-line offers additional upside cap.

Anil Panchal FXStreet

With the confluence of 100-hour moving average (HMA) and 23.6% Fibonacci retracement of July-end to early-August downpour limiting the AUD/JPY pair’s near-term upside, sellers target immediate support-line during further weakness. The quote takes the rounds to 71.40 during the early Asian session on Thursday.

Ahead of meeting an upward sloping trend-line since August 07, at 71.06, prices may take a halt around the recent low of 71.25.

However, a downside break of 71.06, also clearing the 71.00 round-figure, might not refrain from challenging monthly bottom surrounding 70.70.

Meanwhile, two-day-old resistance-line at 71.86 acts as an additional upside barrier should the 71.70/71 confluence falls short of restricting the recovery.

AUD/JPY hourly chart

Trend: Bearish

1. R3 75.31
2. R2 74.12
3. R1 73.33
PP 72.15
1. S1 71.36
2. S2 70.18
3. S3 69.39

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.

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