AUD/JPY Technical Analysis: All eyes on resistance-turned-support amid overbought RSI
- AUD/JPY seesaws around the multi-month top, prices recently completed five consecutive positive weeks.
- A three-week-old rising support line could challenge sellers during the pullback.
AUD/JPY trades around 76.45 amid Monday’s Asian session. The quote is little changed from Friday’s conditions where it lacked the courage to extend the run-up beyond May’s high. The same could be traced from overbought conditions of the 14-bar Relative Strength Index (RSI).
As a result, sellers look for entry below the resistance-turned-support line stretched since early November, at 76.10 now. That said, a short-term ascending trend line near 75.50 could then question the bears.
If prices slip beneath 75.50, December 18 low near 74.80 and the monthly bottom surrounding 73.80 will be on the Bears’ radar.
Meanwhile, the latest high around 76.60 holds the key to pair’s further advances targeting February-March lows close n the vicinity of 77.54/44.
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.
