AUD/JPY Price Analysis: Reverses from two-month-old resistance line towards 94.50

• AUD/JPY takes offers to renew intraday low, snaps three-day uptrend.
• Weekly support line, 50-DMA challenge short-term downside amid bullish MACD signals, firmer RSI.
• Buyers need validation from July’s high to keep reins.

AUD/JPY refreshes daily bottom around 94.70 as it extends pullback from short-term key resistance line during Monday’s Asian session. In doing so, the cross-currency pair prints the first daily loss in four.

However, an upward sloping support line from August 03 joins the bullish MACD signals and firmer RSI (14), not oversold, to keep buyers hopeful unless the quote stays beyond 94.50.

Following that, the 50-DMA support near 93.90 will be crucial for the AUD/JPY bears to watch as it holds the key to the pair’s further downside towards the monthly low near 90.50.

During the anticipated fall, the 50% Fibonacci retracement of the May-June upside, near 92.00, could act as an intermediate halt.

Alternatively, an upside clearance of the two-month-old descending resistance line, at 95.10 by the press time, could tease the buyers.

Even so, July’s high of 95.75 may challenge the upside momentum before directing the AUD/JPY prices towards the yearly top of 96.88, marked in May.

Overall, AUD/JPY is expected to witness a short-term downside but the trend remains bullish.

AUD/JPY: Daily chart

Trend: Limited downside expected