- AUD/JPY maintains a muted tone in the Asian session.
- Potentially more gains on the way if price breaks above 84.65.
- Momentum oscillator hints at upward price movement.
The AUD/JPY cross makes efforts to stay afloat on the last trading day of the week. The pair opened on a lower lot, yet managed to trace back to the previous day highs near 84.65.
At the time of writing, AUD/JPY is trading at 84.53, down 0.03% on the day.
AUD/JPY daily chart
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On the daily chart, AUD/JPY has been consolidating near the 50% Fibonacci retracement at 84.63. If price breaks the mentioned level, then the first hurdle could be located at the Wednesday’s high at 84.95. On moving higher, price would attempt to retest the May 12 high placed at 85.26.
The price action would then mark the completion of the 23.6% Fibonacci retracement and would approach the next upside target at the 85.50 horizontal resistance level.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator reads above the midline with receding upside momentum. If any downtick occurs in the oscillator then it would invite the sellers to take over the previous day’s low at 84.24, just above the 50-day Simple Moving Average (SMA) at 84.21.
A break below the 50-SMA would prompt the bears to retest the May 4 low at 83.93. On the downside, price would move into the trajectory of the levels last seen in late April. The next area of support would be the April 21 low at 83.22.