- AUD/JPY recedes from the three-day-old resistance line while defying the previous two-day losing streak.
- 200-hour EMA, monthly support line keeps the buyers hopeful.
- Sellers may target the early-month top as immediate support.
AUD/JPY marks another failure to cross a downward sloping trend line since Wednesday while declining to 76.56 during the early Monday. Even so, the Aussie cross gains 0.20% on a day, which in turn snaps the previous two-day losing streak.
Given the pair’s latest pullback takes clues from overbought RSI and a short-term resistance line, sellers may aim for the early-August top near 76.40/45 as immediate support ahead of an ascending trend line from July 30 at 76.20. Also acting as the key support is a 200-hour EMA level of 76.15.
In a case where the bears dominate past-76.15, 76.00 might not able to restrict the pair’s downside as 75.70 has multiple bounces to challenge the further weakness.
Alternatively, a clear break of the said resistance line, currently near 76.70, will attack 77.00. However, highs marked in June and July will be the key barriers near 76.75 and 76.90.
AUD/JPY hourly chart
Trend: Pullback expected