- AUD/JPY stays inside 72.69-73.12 region.
- 21-day EMA, 50% Fibonacci retracement restrict the upside while the early-August top and recent low limit the declines.
- Bearish MACD, sustained trading below 100-day EMA portrays underlying weakness.
Despite bouncing off the short-term range support, AUD/JPY refrains from breaking the choppy momentum as it trades near 72.86 during the early Asian session on Wednesday.
The pair has been clubbed inside a 43-pip area off-late wherein the range resistance includes a confluence of the 21-day exponential moving average (EMA) and 50% Fibonacci retracement of July-August downpour while the support comprises August 06 high and multiple lows marked since Friday.
However, bearish indicator from 12-bar moving average convergence and divergence (MACD), coupled with the pair’s sustained trading below 100-day EMA, speak more in favor of the bears targeting 38.2% Fibonacci retracement level of 72.38 and 71.80 rest-points if prices slip beneath 72.69 range support.
On the upside, pair’s sustained break of 73.12 can aim for 73.50 and 61.8% Fibonacci retracement level of 73.87 ahead of confronting 100-day EMA level of 74.40.
AUD/JPY daily chart
Trend: sideways
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