AUD/JPY technical analysis: Repeated failures to cross 50-day EMA highlights 4-week old support-line

Lower highs since late-May, failures to clear near-term key moving average (MA), portrays the AUD/JPY pair’s weakness.
Sellers can aim for 75.58/54 as immediate support ahead of targeting a month-long support-line.

Anil Panchal FXStreet

With its another U-turn from the 50-day exponential moving average (EMA), AUD/JPY declines to 75.90 during the early Asian session on Wednesday.

As a result, 75.58/54 support-zone comprising 23.6% Fibonacci retracement of April – June downpour and 21-day EMA gains market attention. However, pair’s further declines can be challenged by an upward sloping trend-line stretched since June 18, at 75.45 now.

In a case where prices slip beneath 75.45, 74.80 and June month low near 73.92 could lure bears.

Alternatively, a successful break beyond 50-day EMA level of 75.93 can have multiple upside barriers around 76.20, 76.40 and 38.2% Fibonacci retracement level of 76.54.

It should, however, be noted that the quote’s sustained rise past 76.54 may not refrain from questioning the strength 76.83 resistance including 100-day EMA.

AUD/JPY daily chart

Trend: Pullback expected

1. R3 76.53
2. R2 76.28
3. R1 76.12
PP 75.87
1. S1 75.71
2. S2 75.46
3. S3 75.3

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.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.