AUD/JPY bounces today as Aussie is somewhat lifted by the recovery in Chinese Yuan, after China stepped up efforts to slow its decline. From a technical perspective, the failure to sustain below 55 4H EMA is a near term bullish sign. Immediate focus is back on 86.83 minor resistance. Firm break there will suggest that pull back from 97.66 has completed at 95.24 already. Further rally should then be seen through this 97.66 resistance.
Overall, near term upside momentum is diminishing as seen in D MACD. Hence, while rise from 86.04 could extend further to retest 99.32 high, upside could be limited there on first attempt. Still, sustained break of 55 D EMA (now at 92.84) is needed to confirm topping. Otherwise, outlook will remain cautiously bullish even in case of another pull back.
