- AUD/JPY seesaws in a choppy range above 78.00 while keeping pullback from fresh high since May 2019.
- Bearish MACD, receding RSI strength require buyers to be cautious.
- 200-HMA adds a filter to the downside below the one-week-old ascending trend line.
AUD/JPY keeps its pullback from 16-month high while taking rounds to 78.10/15 during the initial Asian trading on Tuesday. While an upward sloping trend line from August 25 favors the bulls, the latest weakness in the RSI and MACD signals suggest buyers wait for clarity.
While retracement from a multi-week high is likely to revisit the short-term support line, at 77.61 now, the pair’s further declines will be the key as they highlight the 200-HMA level of 76.60 for sellers.
It should, however, be noted that any more south-run past-76.60 will be enough for the bears to firm up the grips while targeting an upward sloping trend line from June 22 that stays around 76.00 by the press time.
Alternatively, the 78.25 mark holds the key to the pair’s further upside beyond the latest top near 78.50.
Further, the bulls’ dominance above 78.50 will have to cross late-April 2019 peak close to 79.00 before attacking the 80.00 threshold.
AUD/JPY hourly chart
Trend: Pullback expected
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