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  • AUD/JPY fails to holds on to recovery gains from 50-day SMA amid bearish MACD.
  • An ascending trend line since mid-November adds to the support.
  • December-end lows become the key to further upside.

AUD/JPY struggles to remain on the recovery mode while trading around 75.20 during early Tuesday’s Asian session. The pair recently bounced off 50-day SMA but is below 21-day SMA.

While considering the bearish MACD signals and pair’s failure to hold onto recovery, odds of its pullback to a 50-day SMA level of 74.85 can’t be ruled out. However, an upward sloping trend line since November 14, at 74.30 now, can restrict the pair’s further declines.

In a case where bears sneak in bear 74.30, 74.00 round-figure and the previous month low near 73.80 will be on the sellers’ radar.

Alternatively, December 30/31 lows near 76.00/10 offer additional resistance that 21-day SMA level of 75.50.

Should AUD/JPY prices manage to remain strong beyond 76.10, buyers can take aim at 76.60 and 77.00 during further advances.

AUD/JPY daily chart

Trend: Pullback expected