AUD/JPY technical analysis: 3-week old resistance-line, 73.44/48 confluence question bulls

14 Aug 2019

  • AUD/JPY remains positive with bullish MACD.
  • Further upside challenged by near-term trend-line resistance and a confluence of 50% Fibonacci retracement, 4H 100MA.

Following its run-up to the eight-day high, AUD/JPY seesaws near 72.48 during the early Asian session on Wednesday.

While the bullish signal from moving average convergence and divergence (MACD) favor the pair’s further upside, 38.2% Fibonacci retracement of late-July to early August decline, at 72.80, becomes immediate resistance to watch.

Should prices manage to rise past-72.80, a downward sloping trend-line since July 23 can question further upside at 73.24, a break of which can escalate the advances to 73.44/48 confluence including 50% Fibonacci retracement and 100-bar moving average on the 4-hour chart (4H 100MA).

If the quote surges above 73.48, 61.8% Fibonacci retracement near 74.10 and July 31 low near 74.35 could lure buyers.

On the downside, 71.40 and recent low surrounding 70.75 can keep sellers away from 70.00 round-figure.

AUD/JPY 4-hour chart

Trend: Pullback expected

 

Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Any opinions, news, research, analyses, prices or other information contained on this website or linked to from this website are provided as general market commentary and do not constitute investment advice. AUSFOREX does not accept liability for any loss or damage, including any loss or profit, which may arise directly or indirectly from use of or reliance on such information.

Register a Demo Account

Test drive our trading platform with a 30 day free trial

Register a Live Account

Get started.Open a Forex and CFD trading account with AUSFOREX now

Deposit Funds

Express way for deposit funds

Live Chat

Chat live with one of our 7*24 hour multilingual customer service team