AUD/JPY Price Analysis: Bulls consolidate below 50-day SMA near 84.45
- AUD/JPY prints minor gains in the Asian session.
- Bears will reign control if price decisively breaks 84.30.
- Momentum oscillator tilts in favor of downside momentum.
The AUD/JPY cross-currency pair extends the previous day’s decline on Thursday. The pair hovers in a close trading band while swinging back and forth.
At the time of writing, AUD/JPY trades at 84.25, up 0.01% for the day.
AUD/JPY daily chart
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On the daily chart, the AUD/JPY has been moving in a broader rectangle formation since late April. The trading range confides in between the 84.20-85.20 band. Traders create long positions near the lower channel, while selling pressures emerge at the upper trading range.
If price breaks 84.20, then it could bring fresh selling opportunities for the bears with the first target at the previous day’s low at 84.07.
The Moving Average Convergence Divergence (MACD) indicator reads above the midline, with bearish crossover. Any downtick in the MACD could amplify the downside momentum and bring the levels last seen in May back into action.
In doing so, AUD/JPY bears would attempt to test the 83.85 horizontal support level.
The next area of the target could be found at the low of April 26 at 83.50, which also marks the break of the above mentioned rectangle formation.
Alternatively, if price sustains above the session’s high, then it could crawl back to the 84.55 horizontal resistance level followed by the previous day’s high at 84.75.
The price action suggests a continuation of the previous trading move inside the rectangle formation. AUD/JPY bulls would target the June 15 high at 84.93.