AUDJPY’s pullback from the fresh peak of 76.77 appears to have received some support from the 72.78 level that being the 23.6% Fibonacci retracement of the up leg 59.85 – 76.77. The Ichimoku lines sponsor an improving picture as does the 50-day simple moving average (SMA) with its positive overlap of the 100-day SMA.
Looking at the short-term oscillators, they reflect a pause in positive directional momentum. The MACD and the RSI have weakened in their positive regions, with the MACD below its trigger line and the RSI hovering above 50. Furthermore, the stochastic %K line is suggesting price advances as it seems it is nearing a bullish crossover out of the oversold territory.
Should the price shoot off the 23.6% Fibo of 72.78, resistance may commence at the 74.29 point and the red Tenkan-sen line at 74.60 overhead. Climbing higher, a successful breach of the 1-year high of 76.77 could accelerate the pair towards the 78.02 and 78.93 essential borders.
Otherwise, steering below the 23.6% Fibo of 72.78, tough support could arise from the 200-day SMA at 72.15 and the 71.91 barrier. Next, a support region from the 50-day SMA – at the 38.2% Fibo of 70.33 – until the 100-day SMA (residing at the 69.92 low) could deny the decline from reaching the 68.54 hurdle.
Summarizing, the short-to-medium term bias is neutral above the 200-day SMA and 71.91. Yet, should the price break above the 76.77 peak, this may upgrade the short-term outlook to strongly bullish.
