- AUD/JPY seesaws around monthly top after rising the most in over a week.
- Firmer Momentum line, sustained break of previous resistance lines keep buyers hopeful.
- 200-DMA adds to the upside filters, 50% Fibonacci retracement level limits immediate declines.
AUD/JPY takes rounds to 81.75 following the break of a descending resistance line from early November, now support.
The cross-currency pair’s recently sidelined performance could be linked to traders’ wait for November’s Australia jobs report, as well as failures to cross the 100-DMA.
It should be noted, however, that a successful break of the previous resistance lines from November and firmer Momentum line favor the AUD/JPY pair’s further upside.
Even so, November 19 swing low around 82.15 and the 200-DMA level of 82.75 challenge the pair buyers.
Also acting as an upside filter is the 61.8% Fibonacci retracement (Fibo.) of AUD/JPY downside from late October to December 03, at 83.40 by the press time.
Alternatively, a U-turn from the 100-DMA level near 81.80 will retest the resistance-turned-support lines around 81.15 and 80.80 before directing AUD/JPY sellers towards the 23.6% Fibonacci retracement level of 80.55.
In a case where AUD/JPY prices remain weak past 80.55, the 80.00 threshold and the monthly low near 78.80 will lure the pair sellers.
AUD/JPY: Daily chart
Trend: Further upside expected