AUD/JPY Price Analysis: 10-day SMA, two-month-old support line defend bulls

• AUD/JPY pulls back from monthly resistance line before bouncing off 10-day SMA.
• Repeated failures to break short-term SMA, trend line support favor the buyers.
• Sellers can refresh monthly low on the break of 75.80.

AUD/JPY drops 0.25% while flashing 76.30 as a quote amid Tuesday’s pre-European session. In doing so, the aussie cross marks another reversal from a month-long descending trend line. However, 10-day SMA and an ascending trend line from June 22 restrict the quote’s downside.

Hence, the bears are less likely to enter unless AUD/JPY prices slip below the mentioned support line near 75.80 whereas the downside break of 10-day SMA level of 76.20 can offer small moves to the south.

Although the pair’s break of 75.80 makes it vulnerable to refresh the monthly low while attacking 75.00, its further downside might not hesitate to challenge the July month’s bottom around 74.00.

Meanwhile, an upside clearance of 76.70, comprising a downward sloping trend line from July 22, will attack 77.00 before diverting the bulls to March 2019 low near 77.50.

AUD/JPY daily chart

Trend: Bullish