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  • Aussie service activity gauge triggered recent uptick ahead of building approvals.
  • Strong resistance lies ahead to question the increase.

Sustained trading beneath 100-day SMA and a two-week-old descending trend-line portray the AUD/JPY pair’s weakness despite its latest pullback on Aussie service activity gauge to 78.05 during early Friday.

The AiG performance of service index (April) from Australia grew 46.5 from 44.8 around initial Asian session.

The quote witnessed a pullback after the data but is yet to clear 78.35/40 resistance-confluence that comprises 23.6% Fibonacci retracement of its January to April increase and a downward sloping trend-line since April 17.

Should prices rally past-78.40, 100-day simple moving average (SMA) near 78.80 and 79.00 are likely following numbers to appear on the chart.

Also, pair’s rise above 79.80 should conquer 200-day SMA level of 80.00 in order to aim for April highs near 80.75.

On the contrary, 77.90 and 77.70 may act as small rests during further declines ahead of highlighting the 77.55/50 support-zone that includes multiple lows since mid-January.

In a case where prices keep trading southwards under 77.50, 77.20 and 77.00 can offer intermediate stops to their plunge in direction 76.00 and 75.30.

AUD/JPY daily chart

Trend: Down