- AUD/JPY picks up bids, refreshes intraday high during three-day uptrend.
- Strong RSI, successful break of immediate SMA and short-term rising trend line favor bulls.
- One-month-old resistance line in focus ahead of RBA’s quarterly statement, Aussie Retail Sales.
AUD/JPY rises to the fresh intraday high of 80.31, currently around 80.28, during the early Asian session on Friday. In doing so, the quote keeps the previous day’s upside break of 21-day SMA while flashing a three-day rise.
Not only the 21-day SMA break but strong RSI conditions and an ascending trend line from January 28 also favor AUD/JPY ahead of the key events like RBA’s quarterly economic forecasts and the final reading of Australia’s December month Retail Sales.
Considering the recently conveyed economic optimism by RBA Governor Philip Lowe, in her testimony, the upcoming catalysts from Australia can also add strength to the AUD/JPY prices.
As a result, a downward sloping trend line from January 08, currently around 80.55, is likely luring the bulls ahead of the previous month’s top near 80.92 and the 81.00 threshold.
Meanwhile, a downside break of 21-day SMA can trigger a short-term downtrend towards the immediate support line, at 79.88 now.
However, any further weakness past-79.88 will not hesitate to challenge the 79.20 level comprising the previous week’s low.
AUD/JPY daily chart
Trend: Bullish
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