AUD/JPY Price Analysis: Bulls approach 95.50 resistance confluence
- AUD/JPY prints three-day uptrend, justifies upside break of seven-day resistance.
- Six-week-old descending trend line, 38.2% Fibonacci retracement level lures buyers.
- Upbeat oscillators join trend line breakout to favor buyers.
- Bears need validation from 100-DMA, ascending trend line from October 13 restricts adds to the downside filters.
AUD/JPY takes the bids to renew the weekly high near 95.40 during the three-day winning streak on Tuesday. In doing so, the cross-currency pair justifies the upside break of a one-week-old descending resistance line.
Also keeping the pair buyers hopeful are the bullish MACD signals and the firmer RSI (14), not overbought.
It should be noted, however, that a convergence of the six-week-old descending trend line and 38.2% Fibonacci retracement level of August-September upside, near 95.50, appears a tough nut to crack for the AUD/JPY buyers.
Following that, October’s peak of 95.75 and the late September swing high near 96.55 could test the bulls before directing them to the yearly high marked on September 13 around 98.60.
On the flip side, a pullback move remains elusive unless the quote stays beyond the previous resistance line from October 21, close to 95.05 at the latest.
Even if the AUD/JPY bears manage to conquer the 95.05 immediate support, as well as break f the 95.00 round figure, an upward-sloping trend line from October 13 and the 100-DMA, respectively near 94.75 and 94.20, will challenge the sellers before giving them control.
AUD/JPY: Daily chart
Trend: Further upside expected