AUD/JPY Price Analysis: Focus on four-month-old resistance near 81.00 on RBA day
- AUD/JPY keeps rebound from key DMA confluence, sidelined of late.
- Bullish MACD, higher lows keep buyers hopeful to overcome the key hurdle.
- Horizontal support from late July restricts immediate downside.
- Reserve Bank of Australia Preview: Sluggish economic progress should mean a cautious RBA
AUD/JPY picks up bids to 80.87 during a three-day uptrend amid the initial Asian session on Tuesday.
The cross-currency pair await the Reserve Bank of Australia (RBA) interest rate decision and monetary policy comments as buyers attack the key resistance line from June.
However, sustained trading beyond the 20-DMA and 50-DMA confluence, around 80.45, as well as a horizontal area established since July 20 near 79.80, favor the pair buyers.
Hence, the 81.00 immediate resistance line is up for breaking but a daily close beyond the same becomes necessary for the bulls to keep the reins. Following that, September high around 82.00 should return to the charts.
Meanwhile, pullback moves may falter around the said DMA convergence of 80.45 before challenging the 80.00 threshold, if not then the 79.80 may question the short-term downside.
Though, a clear break of the 79.80 support may not resistance dragging the quote back to the last month’s low near 78.80, which in turn will reverse the latest hopes of a recovery in AUD/JPY prices.
AUD/JPY: Daily chart
Trend: Further upside expected