AUD/JPY technical analysis: Break of nearby trend-line can validate upside to 76.35/40
- Break of month-long trend-line portrays pair’s strength but another resistance-line question the upside momentum.
- Pair’s repeated failures to slip beneath 75.30 also favor buyers.
In spite of breaking four-week-old trend-line resistance, the AUD/JPY pair needs to justify the strength of upside momentum by clearing a week-long resistance-line. The quote presently trades near 75.80 during early Monday.
Should prices clear 75.95 immediate trend-line barrier, 76.35/40 area comprising multiple technical levels since early-May could be on the buyers’ radar.
Additionally, pair’s sustained rise beyond 76.40 enables it to target 77.10 and May 07 top around 78.05.
In a case where sellers lurk around 75.95, 75.60 and 75.30 may come back on the chart.
Assuming extended downturn past-75.30, 75.00 and July 2016 low near 74.50 could become bears’ favorites.
AUD/JPY 4-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.
