Hovers around yearly high below 85.00, RSI probes bulls

  • The AUD/JPY recently marked a 60 pip move on a rapid change in market sentiment due to the headlines out of Ukraine.
  • The six-week rising channel joins the nearly overbought RSI line to test buyers.
  • Pullback moves should be validated from 83.90 before aiming for channel support, 200-SMA confluence.

AUD/JPY resumes offers reversing last decline as market mood shifts early Friday. The Risk Barometer pair first dipped to 84.16 before rising recently to 84.65, remaining around the yearly high marked the previous day.

In doing so, the quote is hovering near the upper line of a six-week-old bullish channel and hints at a pullback if the fundamentals hold. The near-overbought conditions of the RSI also favor the chances of a pullback.

However, a confluence of the 20-SMA and an ascending support line from February 24 near 83.90 limits the price’s immediate decline.

If AUD/JPY prices break below 83.90, the likelihood of it falling towards key support at 82.45-40, comprising 200-SMA and the lower line of the indicated channel, cannot be ruled out.

Alternatively, upside moves should break through the resistance line of the channel, near the 85.00 threshold.

Then, the round figure of 86.00 could act as a buffer before steering the AUD/JPY bulls towards the October 2021 peak near 86.25.

AUD/JPY: four-hour chart

Trend: Bullish

Eleanor C. William