AUD/JPY Analysis Report

Nov 01, 2022

VOT Research Desk

AUD/JPY bids to reestablish the weekly high near 95.40 amid Tuesday’s three-day winning streak. This justifies the cross-currency pair’s upside break of a one-week-old declining resistance line.

The bullish MACD indications and the firmer RSI (14), which is not overbought, are also keeping the pair purchasers encouraged.

However, a junction of the six-week-old declining trend line and the 38.2% Fibonacci retracement level of the August-September upside, near 95.50, appears to be a difficult nut to crack for AUD/JPY investors.

Following that, the October top of 95.75 and the late September swing high of 96.55 could put the bulls to the test before directing them to the September 13 yearly high of around 98.60.

A downward move, on the other hand, remains unlikely unless the price maintains above the previous resistance level from October 21, near to 95.05 at the latest.

Even if the AUD/JPY bears manage to breach the 95.00 round figures and overcome the 95.05 immediate supports, an upward-sloping trend line from October 13 and the 100-DMA, both between 94.75 and 94.20, will test the selling before giving them control.