- AUD/JPY consolidates gains following the previous three session’s upside momentum.
- Multiple top formations near the 81.50 level make it a crucial level to trade.
- Momentum oscillator holds onto the oversold zone with a bullish stance.
AUD/JPY prints minute gains in the Asian session. The pair hovers in a narrow trade band of 18 pips.
At the time of writing, AUD/JPY is trading at 81.36, up 0.01% for the day.
On the daily chart, after making a high at 84.19 on July 6, the AUD/JPY cross-currency pair has been under constant selling pressure. The descending trendline from the top acts as a defence for the bulls.
A break above the intraday high would make AUD.JPY hopeful to test the high of July 16 at 81.94.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD could amplify the upside momentum in the pair.
In doing so, the buyers would test the 82.35 horizontal resistance level followed by the high made on July 13 at 82.82.
Alternatively, if price starts moving lower, it would march toward the first downside target at the previous session’s low of 80.88.
In doing so, the price action suggests further downside for the pair in the coming few sessions.
Next, AUD/JPY bears would target the 80.50 horizontal support level.
A daily close below the mentioned level would open the gates for the low of August 31 at 80.07.