- AUD / JPY retreats from the highest levels since May 2019 flashed on Thursday.
- Sustained trading above the 12 week ascending trendline keeps the bulls under control.
- The February 2019 bottom offers immediate resistance, a 21 day SMA and monthly support line could appeal to declines below 77.00.
AUD / JPY crosses to 77.32 early Friday morning in Asia. The pair refreshed the previous day’s annual high after breaking an uptrend line from early June. However, failure to recover from February 2019 low triggers the latest pullback.
Even so, the bullish MACD and the successful breakout of the short term key resistance line favors buyers who are aiming for a breakout of the immediate hurdle of 77.44 ahead of the difficult March 2019 bottom around 77.55.
It should be noted, however, that the pair’s ability to break through 77.55 allows it to break through 78.00 round digits while challenging the April 2019 low of 78.11.
On the contrary, a clear break below the multi-week support line, the previous resistance, at 77.00 now, will highlight the early month high around 76.70 as subsequent rest points.
In a case where bears dominate above 76.70, a 21-day SMA level of 76.23 and an uptrend line from July 30 near 75.87 will be important to watch.
AUD / JPY daily chart