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  • AUD/JPY drops 0.30% after refreshing 11-week top the previous day.
  • Monthly horizontal support can probe short-term sellers.
  • March high will lure the bulls during further upside.

While taking a U-turn from multi-day-old resistance line AUD/JPY drops to 70.64, down 0.42% on a day, during the early Thursday.

Considering the nearly overbought RSI conditions, coupled with the past pullbacks from the key resistance line, the pair is likely to visit monthly horizontal support around 70.20/15 during the further fall.

However, an upward sloping trend line from April 02, at 69.00, followed by a 200-bar SMA level of 68.83, will challenge the bears afterward.

Meanwhile, the pair’s sustained trading above the said resistance line, at 71.06 now, can aim for March month high of 71.52.

AUD/JPY four-hour chart

Trend: Pullback expected