- AUD/JPY seesaws between 200-bar SMA and near-term trend-line resistances.
- Positive MACD histogram strengthens the case for an upside break.
With its repeated turns from the key simple moving average (SMA) and a week-long falling trend-line, AUD/JPY trades near 73.00 amid initial Asian session on Tuesday.
While downside break of 200-bar SMA, at 72.70 now, needs validation from August 21 high near 72.40, further declines might not hesitate to visit 61.8% Fibonacci retracement of late-August to mid-September advances, at 71.70.
During the pair’s extended south-run, monthly bottom surrounding 71.10, 70.75 and 70.30 could please bears.
On the contrary, the bullish signal from 12-bar moving average convergence and divergence (MACD) indicator increases the odds of the pair’s another confrontation to week-long horizontal area nearing 73.31/33, a break of which could accelerate the recovery to a downward sloping trendline since September 13, around 73.50.
In a case where prices rally beyond 73.50, 73.90 and monthly tops close to 74.50 will be the buyers’ favorites.
AUD/JPY 4-hour chart
Trend: bullish
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