- AUD/JPY nears 70.80/90 key resistance area ahead of the RBA Governor’s speech.
- Nearly overbought conditions of RSI signal another pullback.
- An upside break could recall multiple tops marked in July.
With the risk-tone getting lighter ahead of the key Australian event, AUD/JPY rises to the fresh weekly high while taking the bids to 74.70 ahead of the European session on Tuesday.
The pair needs to conquer 70.80/90 area comprising multiple highs marked since July-end, to justify the recent strength in upside momentum.
Should that happen, prices could rally further towards 50% Fibonacci retracement of April-August declines, at 75.35, whereas July month tops around 76.20/30 could lure bulls afterward.
Meanwhile, 14-bar Relative Strength Index (RSI) is nearing overbought conditions, which in turn highlights the importance of 100-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement, around 74.00/10 area.
While technicals indicate a pullback, comments from the Reserve Bank of Australia (RBA) Governor Philip Lowe will be the key to foresee near-term trade direction.
AUD/JPY daily chart
Trend: pullback expected
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