Search ForexCrunch
  • AUD/JPY struggles to keep the upside break of 76.00 despite trading near nine-day high.
  • 100-bar SMA restricts immediate advances, confluence of 200-bar SMA and a falling trend line from August 31 is important resistance.
  • Sellers will not risk entries unless witnessing a downside break of short-term channel.

AUD/JPY trades near 75.85 during the early Friday morning in Asia. The pair rose to the highest since September 21 the previous day while following a one-week-old ascending trend channel pattern. However, 100-bar SMA challenges the buyers off-late.

With the bullish MACD signals, the quote may nearby hurdle, 100-bar SMA level of 75.90, but the further rise will be challenged by the mentioned channel’s resistance around 76.20/25.

Even if AUD/JPY bulls manage to cross 76.25 resistance, a joint of 200-bar SMA and a one-month-long descending resistance line, close to 76.45/55, will be a tough nut to crack for them.

Meanwhile, the support line of the channel, at 75.51 now, can stop the short-term downside of AUD/JPY ahead of dragging it below the 75.00 threshold.

In a case where the pair slips below 75.00, September 25 top surrounding 74.60 and the previous month’s low of 73.97 will lure the bears.

AUD/JPY four-hour chart

Trend: Pullback expected