The Australian dollar is trading higher against most major currencies, including the Japanese yen. There is a nice bullish run from the last 4 days for the AUDJPY pair. However, we need to be very careful, as the AUDJPY pair is heading towards an important resistance area. There was no major economic release in the Australia, which is going on the positive side of the Aussie. The AUDJPY pair is under a divergence on the daily timeframe, which is also a warning sign that a short term top might be in place soon. So, one need to be very careful in chasing the AUDJPY pair higher.
There is an important bearish trend line formed on the daily chart for the AUDJPY pair, which acted as a hurdle for the pair on many times. The mentioned trend line also coincides with the 76.4% fib retracement level of the last drop from the 96.50 high to 93.92 low. The pair is heading towards the highlighted trend line, and if it manages to test it, then it would be interesting to see whether the pair can break higher or not. A break and close above the trend line might be a bullish call on the pair, which can take it higher towards the last swing high of 96.50.
On the downside, initial support can be seen around the 100 day simple moving average at 95.30. Any further decline might take the pair towards the 94.80 support level. The pair is trading above all key moving averages, which is a positive sign in the short term.
Overall, buyers are here to stay, but we cannot deny the fact that the pair is heading towards an important resistance area.
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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com
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