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  • Near-term downward sloping resistance-line restricts the upside.
  • Oversold RSI indicates pullback from a week’s low.

Following its sustained observance to two-week-old trend-line resistance, AUD/JPY is taking the rounds near 78.15 at the initial Asian trading on Thursday.

The pair tests a week’s low with 78.10/78.00 acting as immediate support while 14-bar relative strength index (RSI) being in the oversold territory.

Should prices refrain from respecting pullback signals, 61.8% Fibonacci expansion (FE) of its April 23 to 29 moves, at 77.80, followed by multiple supports near 77.55/45, can flash on the sellers’ radar.

Meanwhile, an upside clearance of 78.35 can re-check the fortnight-long trend-line resistance, at 78.60.

In a case where the quote rallies past-78.60, 78.90 and 79.30 may gain market attention.

AUD/JPY hourly chart

Trend: Pullback expected