AUDJPY gathered additional positive traction towards a fresh two-year high on Friday after closing above the 79.00 mark, where the 200 simple moving average (SMA) is located in the weekly chart.
While the bullish market structure and the upward direction in the RSI and the red Tenkan-sen line hold the short-term bias on the positive side, the bulls may need to push harder to surpass the support-turned-resistance line stretched from August 2019.
A step above the resistance line currently at 80.90 could likely fade around the 82.00 level, where the market action stalled several times during the 2015 – 2018 period. Above that, the next obstacle could commence within the 83.60 – 84.50 area before the door opens for 85.40.
On the downside, the red Tenkan-sen line and the 20-day SMA at 79.80 and 79.00 respectively could act as a safeguard against potential negative corrections, preventing any move towards the 77.80 level and the 50-day SMA slightly beneath. A break below the latter would violate the upward patten in the short-term picture, concurrently turning the medium-term outlook to neutral.
Summarizing, AUDJPY continues to face bullish pressures, though a significant move beyond the key resistance line is required to attract fresh buying interest.
