AUDJPY has been ramping up since the price encountered strong support at the 8-month low of 77.87 in mid-August. However, the pair has been giving up ground lately after its recent rally halted at the 3½-year high of 86.23. As the price is heading to test its 50- and 200-day simple moving averages (SMAs), its immediate bias seems negative.
This recent pullback is likely to continue as the short-term oscillators indicate that the positive forces are fading. The MACD histogram is above zero but below its red signal line, while the RSI is flatlining in the negative area.
Should the selling pressure intensify, the initial hurdle might be found at the 82.13 level, which has provided both support and resistance in recent months. If sellers manage to conquer this barricade, then the next challenge could be the 81.32 level. Crossing below this support level, the price might then halt its decline at 79.81 or even lower at the 78.86 region.
Alternatively, should the bulls retake control, the first resistance barrier might be met at the 85.17 level. If the price ascents higher, the next obstacle could be the 3½-year high of 86.23. Higher up, the next barrier for buyers may be the December 2017 low of 87.20.
Overall, AUDJPY has been in an upward move since mid-August. Although the pair has lost ground recently, only a clear move below 77.87 would alter the medium-term outlook to negative.
