AUD/JPY Price Analysis: Limited upside expected as Australia employment data looms
- AUD/JPY prints five day winning streak, prints mild gain of late.
- Upbeat MACD signals, sustained bounce off three-week-old support favor buyers.
- Multiple hurdles towards the north, downbeat expectations from Aussie employment report prod bulls.
- Bears need validation from 88.45 and Australia jobs data to retake control.
AUD/JPY portrays mild gains around 89.20 as bulls keep the reins for the fifth consecutive day ahead of Australia’s monthly employment report, up for publishing on early Thursday.
In doing so, the cross-currency pair extends the previous week’s rebound from an upward-sloping support line from March 24, as well as the 21-DMA. Adding strength to the upside bias are the bullish MACD signals.
However, a likely increase in the Aussie Unemployment Rate, as well as downbeat Employment Change, for March joins multiple technical hurdles towards the north to challenge the AUD/JPY buyers.
Among them, a six-week-old descending resistance line near 89.50 and the 90.00 round figure are the initial challenges for the pair buyers.
Following that, the previous support line from late December 2020, around 90.25, will precede a seven-month-old descending trend line, close to 91.10 at the latest, to act as the last defense of the AUD/JPY bears.
Meanwhile, pullback moves remain elusive unless the quote stays beyond the 88.45 support confluence comprising the 21-DMA and a three-week-long rising trend line.
In a case where AUD/JPY bears manage to conquer the 88.45 support, multiple rest-points near 87.40-35 and 87.00 may prod the downside moves before highlighting the latest bottom of around 86.05 for the sellers.
AUD/JPY: Daily chart
Trend: Limited upside expected