- AUD/JPY recovers from four-month low towards regaining the 74.00 round-figure.
- 200-day EMA, 38.2% Fibonacci retracement probe buyers amid weak RSI conditions.
- Sellers may await fresh multi-day low before taking new positions.
AUD/JPY refreshes intraday high to 73.70, up 0.12% on a day, during early Friday. The pair dropped to the lowest since June 25 the previous day before recovering major losses to print a trend reversal signaling candlestick on the daily chart.
While the recovery moves look to the 74.00 threshold as immediate resistance, the upside momentum is less likely to last longer than 74.20/25 resistance confluence including 200-day EMA, a falling trend line from October and 38.2% Fibonacci retracement of April-August run-up.
Also likely to challenge the buyers are weak RSI conditions that don’t back the bounce by staying above oversold conditions.
Meanwhile, fresh selling should be awaited unless AUD/JPY defies the previous day’s bullish Doji by refreshing the multi-day low of 73.13.
In doing so, a 50% Fibonacci retracement level of 72.90 and the June month’s low near 72.50 will be the key to watch.
AUD/JPY daily chart
Trend: Pullback expected
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