AUD/JPY Price Analysis: 75.90 becomes the key to bear’s entry
- AUD/JPY stays pressured near one week low after consecutive two-day declines.
- A confluence of 21-day SMA, support line of the two-month-old rising wedge becomes the tough nut to break for sellers.
- 50-day SMA adds to the downside filters ahead of 100/200-day SMA joint.
AUD/JPY keeps losses flowing near 76.20 after initially declining to 76.11, the lowest in a week, during the early Thursday morning in Asia. The quote dropped for the previous two days but stays well beyond the key support to confirm the bears’ governance.
An upward sloping trend line from June 18, comprising part of a short-term rising wedge bearish formation, joins 21-day SMA to challenge the bears around 75.90.
While bearish MACD threatens 76.00 threshold, the pair’s further downside could be challenged by strong RSI conditions and a tough a support level.
Even if the sellers manage to conquer 75.90 mark, a 50-day SMA level of 75.00 will be validating the quote’s further downside towards a joint of 100 and 200-day SMAs near 72.60.
Meanwhile, 76.70 can offer immediate upside barrier for the pair ahead of fueling it to battle the rising wedge’s resistance line near 77.00.
AUD/JPY daily chart
Trend: Pullback expected