AUD/JPY technical analysis: Struggles for direction between 100, 50-day EMA

AUD/JPY fails to extend medium-term trend-line breakout beyond 100-day EMA.
Overbought conditions of RSI could push sellers for re-entry.

Anil Panchal FXStreet

Despite breaking key medium-term resistances (now supports), AUD/JPY clings to 74.20 during early Asian morning on Tuesday.

The 100-day exponential moving average (EMA) restricts the quote’s upside, at 74.56 now, even after rising beyond five-month-old falling trend-line and 50-day EMA. Also supporting the case for a pullback is overbought conditions of 14-day relative strength index (RSI).

As a result, sellers will look to re-enter on a downside break below 73.45/40 confluence including resistance-turned-support line and 50-day EMA.

In doing so, 23.6% Fibonacci retracement of April-August declines near 72.50 will become their target.

Meanwhile, an upside clearance of 100-day EMA near 74.56, could escalate the pair’s run-up towards 75.00 whereas 50% Fibonacci retracement level of 75.36 will please bulls then after.

AUD/JPY daily chart

Trend: sideways

1. R3 75.04
2. R2 74.77
3. R1 74.57
PP 74.3
1. S1 74.1
2. S2 73.83
3. S3 73.64

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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