- AUD/JPY looks exhausted on Friday following the previous two day’s run, still trades higher.
- Double bottom near 79.00 provides much needed support for the cross-currency pair.
- Momentum oscillators point to a struggle for the bulls to march higher at the current moment.
AUD/JPY edges mildly higher in the Asian trading hours on Friday morning. The pair gained in the previous session, which constitutes a rise of more than 100-pips. As of writing, AUD/JPY is trading,at 80.52, up 0.06% for the day.
AUD/JPY daily chart
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Technically speaking, the pair has been in the short-term downtrend since June 17after making a high of 84.62, which was confirmed by a break of 20-day and 50-day Simple Moving Average(SMA) confluence at 84.57 and 84.43 respectively.
The pair bucked the previous trend following the formation of a Doji candlestick on August 20. AUD/JPY retraced back to September month high at 81.52 (September 3) only to fall back to the 79.00 level from where it jumped to 80.59 in a matter of previous two days.
If the price breaks the 20 and 50-day SMA crossover, it could test the 81.00 horizontal resistance level followed by the high made on September 8 at 81.64. Next, the AUD/JPY bulls would enjoy the 82.05 horizontal support level.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator trades below the midline with a bearish stance. Any downtick in the MACD would invite bears back into the picture with the 80.00 horizontal support level as the first downside target.
A daily close below 80.00 would prompt AUD/JPY to retest the previous day's low at 79.35 followed by the 79.00 horizontal support level.
AUD/JPY additional levels
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