- AUD/JPY gathers momentum in the Asian session.
- Cross faces stiff resistance near 50-hour SMA.
- Bullish momentum oscillator tilts in favor of the bulls.
AUD/JPY price cross edges higher in the Asian session. While carrying the New York session’s gains, the cross opened higher and touched the session’s high at 84.92.
At the time of writing, AUD/JPY is trading at 84.92%, up 0.18% on the day
AUD/JPY 4-hour chart
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On the 4-hour chart, the AUD/JPY cross is making efforts to cross above the 50-hour Simple Moving Average (SMA) at 84.95. This also marks the breach of a key psychological mark, which would allow AUD/JPY bulls to enjoy gains toward the May 17 high at 85.14. The AUD/JPY bulls remain defensive near the downward trendline from the highs of 85.80/
The Moving Average Convergence Divergence (MACD) indicator is about to cross the midline with a bullish crossover. The reading supports the probability of higher price action converging at the 85.30 horizontal resistance level followed by the May 10 high at 85.80.
Alternatively, If price reverses lower, then it could first test the 84.60 horizontal support level. It would entice the bears to try for the May 13 low in the vicinity of 84.30 range.
A break below the above-mentioned level would intensify the selling pressure towards the next support level around the May 4 low of 83.93.