- AUD/JPY remains on the front foot around four-month high as bulls attack key resistance.
- Overbought RSI conditions may trigger pullback but bears should remain cautious until witnessing a break of 82.90-80 zone.
AUD/JPY renews multi-day top while taking bids near 84.50, up 0.13% intraday ahead of Thursday’s European session.
In doing so, the risk-barometer pair jostles with an upward sloping resistance line from mid-November, around 84.50, amid overbought RSI conditions.
Hence, the odds of a pullback towards the 84.00 threshold are quite higher.
However, a convergence of the 21-DMA, 100-DMA and a five-week-long ascending support line will be a tough nut to crack for AUD/JPY sellers around 82.90-80 afterward.
Should the quote drops below 82.80, odds of witnessing further downside towards January’s low of 80.36 can’t be ruled out.
Alternatively, a daily closing beyond 84.50 will need validation from late October’s swing low near 84.60 to confirm further advances.
Following that, the late 2021 peak of 86.25 will gain the AUD/JPY bull’s attention.
AUD/JPY: Daily chart
Trend: Pullback expected