Search ForexCrunch
  • AUD/JPY bounces off one-week-old support line, fades recent pullback.
  • Bearish chart pattern jostles with bullish MACD above 200-SMA.
  • Bulls are likely to keep the reins but upside seems limited.

AUD/JPY holds recent gains above 84.00, at 84.15 during the initial Asia session on Thursday, while staying inside a two-week-old ascending triangle formation.

Given the quote’s latest U-turn from the bearish chart pattern’s support line, the recovery towards the formation’s resistance near 84.35 can’t be ruled out.

However, any further upside seems tough amid sluggish MACD and multiple barriers below 84.50.

Meanwhile, a clear break below the stated triangle’s support line near the 84.00 threshold should quickly drag the quote to a 200-SMA level of 83.52.

Although the key SMA is likely to keep the AUD/JPY bears chained, any further weakness can make the pair vulnerable to revisit the previous week’s low close to 82.30.

AUD/JPY four-hour chart

Trend: Pullback expected