- AUD/JPY probe sellers around the key SMA support.
- Failures to cross short-term SMA, downbeat Momentum favor bears.
- 21-day SMA, two-week-old resistance line guards short-term upside.
AUD/JPY struggles for a clear direction while taking rounds to 84.10-20, recently picking up bids, during the initial Asian session on Monday. The cross-currency pair seesaws around 50-day SMA amid declining Momentum line.
Also favoring the AUD/JPY sellers could be the pair’s failures to cross 21-day SMA during late last week, as well as a downward sloping trend line from May 10.
It should, however, be noted that a daily closing below 50-day SMA level near 84.15 becomes necessary for the bears to attack a two-month-old ascending trend line, around 83.85.
Should the quote drop below 83.85, April lows surrounding 83.00 will be in the spotlight.
Alternatively, AUD/JPY buyers may not take risk of fresh entry unless witnessing a clear break above 84.65, comprising 21-day SMA and short-term falling trend line.
Following that, 85.15 and the monthly peak close to 85.80 should entertain the bulls ahead of directing them to the 86.00 threshold.
AUD/JPY daily chart
Trend: Further weakness expected
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