AUD/JPY technical analysis: Better bid, but breakout still elusive

AUD/JPY is flashing green on US-China trade optimism.
A close above 72.73 is needed to confirm a bullish breakout.

Omkar Godbole FXStreet Contributor

AUD/JPY is currently trading at 72.56, representing 0.40% gains on the day.

The currency pair picked up a bid near 72.00 after the news of a potential US-China currency pact hit the wires via Bloomberg, boosting demand for the risky assets like the AUD.

Even so, the pair failed to find acceptance above resistance at 72.73 – the upper edge of a falling channel represented by trendlines connecting Sept. 13 and Oct. 1 highs and Sept. 20 and Oct. 2 lows.

A close above 72.73 would confirm a bullish breakout and imply a resumption of the rally from the August lows below 70.00 and open the doors for a retest of recent highs near 74.50.

The outlook would turn bearish if the pair drops below Oct. 2's low of 71.73.

Daily chart

Trend: Bullish above 72.73

Technical levels

AUD/JPY

Overview
Today last price	72.56
Today Daily Change	0.29
Today Daily Change %	0.40
Today daily open	72.27

Trends
Daily SMA20	72.97
Daily SMA50	72.47
Daily SMA100	73.92
Daily SMA200	76.18

Levels
Previous Daily High	72.49
Previous Daily Low	71.92
Previous Weekly High	73.38
Previous Weekly Low	71.73
Previous Monthly High	74.5
Previous Monthly Low	71.1
Daily Fibonacci 38.2%	72.27
Daily Fibonacci 61.8%	72.14
Daily Pivot Point S1	71.97
Daily Pivot Point S2	71.66
Daily Pivot Point S3	71.4
Daily Pivot Point R1	72.54
Daily Pivot Point R2	72.8
Daily Pivot Point R3	73.11

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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