- AUD/JPY fades latest bounce-off two-week low but stays above key technical supports.
- Bullish candlestick formation, upbeat RSI favor buyers eyeing monthly top.
- Two-month-old support line, 21-day SMA restrict immediate downside.
AUD/JPY fizzles recent recovery moves while easing to 84.24 amid the initial Asian session on Tuesday. Even so, the quote stays above an ascending trend line from January 28 and 21-day SMA after flashing a bullish candlestick, dragonfly Doji, the previous day.
Considering the quote’s sustained trading above the stated trend line and immediate SMA, coupled with upbeat RSI conditions, the stated bullish candlestick can play its role of recalling the buyers aiming at the 85.00 threshold as an immediate target.
However, the monthly top surrounding 85.45 and the 86.00 round-figure could test the AUD/JPY bulls afterward.
Meanwhile, the nearby support line and 21-day SMA, respectively around 84.20 and 83.85, probes the AUD/JPY sellers before Monday’s low of 83.72.
Should the quote remains dismal past-83.72, odds of its drop to late February low near 82.00 can’t be ruled out.
AUD/JPY daily chart
Trend: Bullish
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