February 8, 2023

Buyers stay hopeful below 92.00 as golden cross looms

  • AUD/JPY retreats from six-week high, stays pressured near intraday low of late.
  • 50-SMA pierces off 200-SMA from below to suggest further upside via golden cross.
  • Weekly support line guards immediate downside, bulls may aim for monthly ascending trend line.

AUD/JPY takes offers to pare the biggest weekly gains since mid-October around 91.85 during the mid-Asian session on Thursday. In doing so, the cross-currency pair takes a U-turn from the 1.5-month high, marked the previous day, while holding lower grounds near intraday bottom.

The quote’s latest pullback could be linked to its ability to cross an upward-sloping resistance line from the late December, around 92.80. Adding strength to the bearish bias are the red signals from the MACD indicator.

However, a one-week-old ascending trend and the golden cross between the 50-SMA and the 200-SMA challenge the AUD/JPY sellers. That said, the golden cross is a bullish moving average (MA) crossover where the short-term MA crosses the longer-term ones from below and hints.

As a result, the pair buyers before hopeful unless the quote stays beyond the immediate support line, close to 91.50 by the press time.

Following that, a convergence of the stated SMAs near 93.38 appears the key challenge for the AUD/JPY bears before targeting the monthly low of 87.41.

On the flip side, the aforementioned resistance line from December 28, close to 92.80 at the latest, restricts immediate upside of the pair. Adding strength to the stated hurdle is the monthly high.

In a case where the AUD/JPY pair rises past 92.80, the mid-December high near 93.35 and the last monthly peak of 93.81 could lure the bulls.

AUD/JPY: Four-hour chart

Trend: Further upside expected

 

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