- AUD/JPY trades with modest gain in the Asian session.
- More downside on the cards if breaks below 84.30.
- Neutral momentum oscillator suggests a wait-and-watch approach.
The AUD/JPY price seesaws in the Asain session swinging in a very narrow trade range. The cross is confined in a 10-pips movement so far.
At the time of writing, the AUD/JPY cross is trading at 84.34, up 0.08% on the day.
AUD/JPY 4-hour chart
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On the 4-hour chart, the cross has been hovering near the 84.30 mark with the formation of multiple tops, it remains a critical level to trade. The mentioned level also coincides with the 20-hour Simple Moving Average (SMA).
The descending trend line from the highs of 85.80 provides a barrier for the bulls as price remains pressurized while approaching the trendline.
If price slips below the 20-hour SMA, then it would amplify the selling pressure toward the 84.15 horizontal support level followed by Monday’s lows in the vicinity of the 83.95 region.
The Relative Strength Index (RSI) indicator falls below the 50 mark, which is indicating more downward pressure for the cross. On following the receding momentum oscillator, price could test the 83.70 horizontal support level.
Alternatively, if price sustained above the session’s high at 84.36 then it could reverse back to the 84.50 horizontal resistance zone. On moving higher, a successive break of the bearish sloping line would seek solace in the 84.80 horizontal resistance level. The bulls would next keep their eyes on the May 18 high at 85.14.